In deciding to hold off on another interest rate cut, the Reserve Bank’s board appears to be waiting to find out what the past was like. Michael Pascoe reports.
I don’t know where to begin with six of the nine RBA board members, the ones who want to wait for another meeting so they can consider what the Bureau of Stats (ABS) will tell them was happening some three months ago. They have no grasp of the present, so forget about the future.
The same six have no faith in the RBA’s own forecasts. Hilariously, they will only trust the forecasts after they have been proven correct. That’s a key part of why they didn’t cut rates again yesterday – they want the bank’s forecasts to be confirmed by the ABS when it hands them the story of the past, the June quarter CPI due to be published on July 30.