retail and export sector (ex mining) are getting hammered
It used to be the case that RBA had 2 things to juggle: inflation and unemployment. Not sure if that is still their mandate. RBA has a target range of inflation but if they continue to jack up rates it puts further upward pressure on the AUD and squeezes the non mining sector even more.
The RBA has a tough job at this point in time. Perhaps the mining tax wasn't such a bad deal after all, because the resource boom is creating many distortions in our economy.
Even though rates will stay on hold the residential property outlook doesn't look bright given the challenges most of our economy faces.
