TWEET TALK: Just a little longer

Economists believe there is evidence enough for a rate cut today but that the RBA will wait to be sure and move later in the year.

But Eureka Report investment strategist Adam Carr (@AdamCarrEcon) says the RBA should hold, though may be tempted to hit the panic button in light of China woes, potential US stimulus and iron ore prices.

"I think they'll just sound a note of caution on China then given those signals," he tweeted.

"The Fed easing is inflationary for us, especially with US growth above trend. Adds to case to hold. China is a tougher one – official stats suggest still solid, albeit slower growth. Iron ore prices tell a different story.

"The risk is they panic again and cut, but I think they hold. They might panic because of the slump in iron ore prices. It doesn't take much to spook them...

"But I think they hold because they got burnt so badly last time, calling domestic economic weakness... when of course economic data showed the economy was strong."



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles