Alan Kohler is one of Australia’s most experienced business commentators. Alan has been a trusted source of investment advice to Australians for many years, and in 2005 he founded Eureka Report - Australia’s #1 online investment report. Along with Robert Gottliebsen and Stephen Bartholomeusz, Alan also founded Business Spectator, the popular business news and commentary website. Alan is the regular finance presenter on the ABC News and producer of the popular nightly graph (or two).
Over the last six months, the difference between Australia’s long and short-term interest rates has narrowed. That would typically be attributed to a tightening monetary policy stance -- but here it's a little different.
The Reserve Bank's downgraded growth outlook could see rates cut this year if household consumption remains downbeat. But more likely, the bank is being overly pessimistic on consumers and rates will hold steady until August 2015.