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How the J Curve saved a rate cut

February 4, 2020
How the J Curve saved a rate cut

Economists wrongfooted on their February interest rate cut calls may have missed just how worthwhile the Reserve Bank of Australia’s efforts on exchange rate management and the economy may have been.

Yarra Capital Management economist Tim Toohey said the J-curve concept may well have improved the economic position from September to December last year but with recent coronavirus and bushfires that could be unwound.

Read more…. (subscription to The Australian Financial Review required).

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