THE DISTILLERY: Rates speculations

Jotters mull the RBA's options for its looming rates decision in the face of falling iron ore prices and a stubbornly high dollar.

Two broad global events in the last few months have tugged at the Reserve Bank from two different directions. On the one hand the fall in iron ore prices and the static response from the Australian dollar has given our central bank a clear case for a rate cut. However, the bulls are receiving substantial support by way of "whatever it takes” signals from the European Central Bank and QE3 from the US Federal Reserve.

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