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RBA Rate-Cut Pressure Mounts Just as ‘Gentle’ Upswing Emerges
Australia’s central bank chief Philip Lowe spent the latter part of 2019 asserting the economy was entering a “gentle turning point” -- a view that was partly vindicated by data last week showing stronger investment intentions and credit growth. But that gentle upswing has been superseded by the abrupt downdraft caused by the coronavirus, leaving the Reserve Bank swept up in a wave of worry that has investors pricing in interest rate cuts from Frankfurt to Beijing. Lowe and his board will keep the cash rate unchanged at a record-low 0.75% at Tuesday’s meeting in Sydney, economists and money markets reckon. ... (full story)