McCrann changes tune on RBA

Terry McCrann, the RBA watcher at the Australian Herald Sun just published a column saying the central bank “will cut its official interest rate” on Tuesday.

McCrann has a spotty recent record but he’s still essential reading and the market still looks to him. What’s particularly interesting about his rate cut call is that he has completely changed his tune since Tuesday, before the CPI data when he said.

While a low inflation number would provide the RBA with the opportunity to cut rates if it wanted to, a low number wouldn’t make such a cut automatic.

In today’s column, he writes.

There is no way the RBA could leave rates on the restrictive side.

Did someone tip him off? Probably not but, at worst, it’s a solid RBA preview.