Looking for an RBA easing? Come back in October says HFE

High Frequency Economics (Carl Weinberg and Jim O'Sullivan) say the Reserve Bank of Australia is on hold until at least October

HFE expect this week's inflation to be at 2% (headline rate), i.e. at the bottom end of the RBA's 2 to 3% target range

Say RBA is on hold nearly all this year. They cite:

• The budget (May 3)
• The upcoming federal election (likely in July)
• A new RBA governor to be appointed (Glenn Steven's term expires in September)

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I agree the RBA is 'on hold' for a good while (I am not smart enough to say right through to October though).

And, I have a lot of time for HFE.

(Here's the) But ...

On the RBA won't move in the approach to an election or during the campaign.

That's wrong.

If the RBA decide they need to act, they will, election campaign or not. They've done so before.

And, on they won't act because of the appointment of a new governor. That's wrong too - again if the RBA decide they need to act, they will.

Oh, while I'm disagreeing with people.

I read last week on one of those we're-all-doomed-all-the-time (i.e. clueless) blogs that the RBA Governor's term is 5 years. Wrong again. The RBA Governor is appointed for up to 7 years.