NOT EVERYONE was expecting the RBA to further ease the cash rate, when its Board met this week.
Some felt the Board would simply "keep its power dry", and just wait to see how the outcome of the 17 June election in Greece unfolded.
Some economists like Saul Eslake (of Merrill Lynch) felt that the $2.5 billion of cash payments by way of government compensation for the carbon tax, would serve as "enough stimulus" for now.
But maybe, such thinking took too simplistic a view of things. [Read more...]