RBA risks upsetting US$2 tln of credit funds if it cuts interest rates, economist says

Tue, 14 Apr 2015

By Fiona Rotherham April 14 (BusinessDesk) - The Reserve Bank of Australia can’t afford to cut interest rates, even with an economy close to a per-capita recession, because it would risk upsetting some of the US$2 trillion of foreign credit funds parked in the Australian dollar, an economist says. Andrew Hunt, who consults to a number of prominent asset managers, hedge funds, central banks and other official institutions, said both the RBA and the Reserve Bank of New Zealand are “no longer masters of their own house” because of the huge...

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