Rates one big game of poker

One of the great things about watching interest rates is the poker game that goes on between the central bank and markets from time to time.

Today’s official cash rate announcement is one of those games.

Everyone agrees we are somewhere near the bottom of this part of the economic cycle, therefore the new question becomes when are things going to turn and when will rates start to rise again?

Following the previous OCR announcement we have seen tentative signs of a very modest recovery; this positive news sent all the economists rushing off to make new predictions about rate rises.