Perspectives: Episode 105 – The memo the RBA missed

This week Escala Partners CIO, Tracey McNaughton, discusses how the US central bank overdelivered on interest rate cuts last week and why the Reserve Bank in Australia is under-delivering. (0:54) The Fed over-delivered in its first rate cut in four years lowering interest rates by half a percent last week. Such a sizeable rate cut is normally associated with a crisis. (4:27) It's not just the US. Europe also cut rates this month. (5:33) We had the Reserve Bank meeting today. Despite the Greens urging otherwise, they decided to keep interest rates unchanged at the 12-year high of 4.35%. (7:47) Speaking of China, the economy received some much needed support from policy makers today but will it be sufficient do you think? (12:16) Your mention of Japan is interesting there. Japanese companies are pulling back on spending in China. (14:17) We are getting a lot of questions from clients on the US debt situation and just where and how it ends. A related question - is there any relationship between rapidly rising government debt and gold prices? (17:27) The countdown to the US election is on – we are now 43 days out. How is the market positioning?