vested
AUD Watch: Will Australia’s Election Limbo Prompt RBA To Cut Rates? By Shuli Ren
Australia is not able to escape the global trend of rising political uncertainty either.
Over the weekend, Australia’s federal election turned out too close to call. Prime Minister Malcolm Turnbull‘s center-right Liberal Party may now need independent and minor parties to reform government, while the opposition Labor Party may even have a chance of forming the government itself.
Turnbull’s coalition now has 71 seats, the opposition has 65 seats. Either of the major parties require 76 seats for an absolute majority. There are now 5 seats polling for independents and 1 for the greens. If Turnbull does not get 76 seats, he will have to negotiate with the minor parties.
We are not likely to know the final counts for a few days, and commentators worry that if the governing coalition can’t reach a majority, there will be an potential for a hung government incapable of pushing through reforms. Incidentally, the Reserve Bank of Australia will meet tomorrow to decide on its monetary policies.
Will the RBA cut rates to boost the economy? A rate cut is not good for the Australian dollar.
Source: Barron's Asia
http://blogs.barrons.com/asiastocks/201 ... cut-rates/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"