The Reserve Bank of Australia should cut rates today, argues James Glynn in the Wall Street Journal.
Markets, however, expect the central bank to wait until May for its next move. RBA Governor Michele Bullock remains cautious, citing lingering inflation.
But Glynn contends that global uncertainty now outweighs the RBA’s desire to wait for marginal improvements in inflation data. That uncertainty is set to escalate this Wednesday, with the Trump administration announcing sweeping tariffs on U.S. trading partners—likely triggering retaliatory measures.
Andrew Boak, chief economist at Goldman Sachs Australia, appears to support Glynn’s view: “There are costs [for the RBA] to waiting until May to cut. Waiting is not always a virtue.”
Is Glynn simply chasing a contrarian headline or is there actually a possibility the RBA could act today?
Markets, however, expect the central bank to wait until May for its next move. RBA Governor Michele Bullock remains cautious, citing lingering inflation.
But Glynn contends that global uncertainty now outweighs the RBA’s desire to wait for marginal improvements in inflation data. That uncertainty is set to escalate this Wednesday, with the Trump administration announcing sweeping tariffs on U.S. trading partners—likely triggering retaliatory measures.
Andrew Boak, chief economist at Goldman Sachs Australia, appears to support Glynn’s view: “There are costs [for the RBA] to waiting until May to cut. Waiting is not always a virtue.”
Is Glynn simply chasing a contrarian headline or is there actually a possibility the RBA could act today?
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