Fed’s rate cut conviction sweeps RBA up in global easing hopes

A forecast interest rate cut by the US Federal Reserve arriving in September unleashed a global wave of monetary easing bets and fuelled a fresh record for Australia’s sharemarket on the expectation the Reserve Bank has no further case to tighten.

The whiplash reaction among rates traders compelled some economists to challenge calls for RBA easing as soon as this year, despite evidence this week of cooling in Australian inflation.