Whilst I do not profess to be as "learned" in economic matters as those on the board of the Reserve Bank, I continue to be perplexed by their decision making.
Economists were burnt by the Reserve last month, so this time around, no one was forecasting a rate cut.
My questions to the RBA are these......
"What do you think you are doing?
What part of Australia do you live in??
Any visit to any shopping mall will tell you that retail is going badly. don't worry about reading company reports, just go there and see that hardly anyone is buying.
Also, manufacturing in this country is not growing, in fact it's shrinking.
whilst there are many political causes for this, which have already been discussed at length here on HC, surely the RBA has to get over this obsession with controlling inflation.
What is inflation now?? It's pretty low. I don't know the exact number but it's certainly within the RBA's range and not growing.
How can inflation grow anyway? It won't happen with these excessively high rates.
We need some stimulus, boys and girls. I don't expect you to compensate for a bad government, but you should be aware of what is happening on the street.
Europe is a basket case and will be for some time. USA is showing some signs of growth, but it's patchy.
China has just announced a controlled slow down in their growth.
I sense that this RBA will be slow to act again, just like they did leading up to the GFC. It was the same RBA board that was putting our rates up, when other Countries were cutting dramatically. By the time our Reserve opened their eyes, the only thing left for them was to cut in panic mode. Didn't see that coming, did they?
What are we paying these people for. Cut the rates!!!
