WEEKEND ECONOMIST: All smoke, no signal

Australia remains gripped by the high dollar and tight fiscal policy but markets have priced out prospects of rate cuts in the future, further distorting Australia's monetary policy outlook.

Markets have moved to effectively price out prospects for any more rate cuts in Australia. We believe such action is misplaced. Consider the results from the June quarter national accounts.  The report highlighted that growth in the Australian economy is slowing down. This is not only due to the peaking of expenditure in the mining sector, but also the lack of response of domestic demand, specifically consumer spending and non-mining business investment to the 225 basis points of rate cuts that the Reserve Bank has delivered since November 2011.  



{{ 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