Yesterday the RBA governor at her news conference said the board is worried about excess demand in the economy or words to that effect.
Huh. domestic demand is 1% and falling. Where is this excess demand. She appears to be worried about unemployment being so low. Well consumers aint spending. Any measure of prices in the market sector has them falling well into the RBA's preferred space. Well yes a recession would affect prices there but at what cost? There are also other ways to bring down prices in the non-market sector is prices in the non-market sector.
As usual I agree with my old mate Peter Martin who says the-rba-says-dont-expect-interest-rate-cuts-for-6-months-heres-why-it-could-be-sooner
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