Does the RBA cut rates to bring down the currency? No, that won't work. The capital inflow is not investing in cash. Far better, according to the RBA, to just watch the inflation rate, watch unemployment, try to ignore warnings about hardship and layoffs in the real world, and read up on what's happening in Europe. On that basis there was a solid case for leaving rates on hold yesterday because, in theory and looking only at the stats, the economy is in equilibrium. More » |
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