Has a journalist ever expressed more brazen confidence about a contentious rate cut this far before the event (especially after The Australian revealed on Monday that there was signficant dissent inside the RBA about the cuts in November and December, which is presumably only even stronger in February)? Before the RBA's internal policy group has met to determine their Board recommendation (this happens today)? Before the Board papers are sent to the Board Members on Friday? And before the Board meets next Tuesday? If he gets this one right, we can start calling him the Shadow Governor again. More importantly, who is tipping Terry McCrann off in breach of both the Corporations Act and the Public Service Act? My best guess is one of the powerful private sector Board members trying to maximise pressure on the bank to cut...
"NEXT Tuesday, the Reserve Bank will almost certainly cut its official interest rate. If it does, the banks will just as certainly cut their lending rates by less than the RBA's 25 points. All hell will break loose in the media. Heck, look what happened in December when all the banks did cut by the full 25 points. It's not hard to imagine the increased media decibel level when this time, they don't."
