According to a Bloomberg News survey, 19 of the 28 economists polled see the Reserve Bank of Australia lowering the benchmark interest rate by another 25bp in December, and the ongoing easing cycle in the $1T economy may spark a selloff in the Australian dollar as long as the central bank maintains a dovish tone for monetary policy. Indeed, RBA warned that ‘further easing may be appropriate’ amid the ongoing slack in private sector activity, and Governor Glenn Stevens may see scope to implement further rate cuts in 2013 as the slowing recovery dampens the outlook for price stability. The recent pickup in business ... (full story)