Perhaps you were expecting Glenn Stevens to relent. To call off his talk about the need for high rates. He hasn't.
The head of the Reserve Bank has acknowledged that the Australian economy is slowing down but says it may have to slow more.
The speech, delivered to the American Chamber of Commerce in Melbourne yesterday, is seen as confirming that interest rates will remain high well into the
Joseph Stiglitz, winner of the Nobel prize for economics in 2001, and a former chief economist of the World Bank, says both developing and developed countries need to abandon inflation targeting or risk damaging their economies.
From ABC’s AM: Read more »
Some people think this is a disaster.
Heat has come out of the Australian jobs market for the first time in nearly two years, raising the prospect that the Reserve Bank's program of interest rate rises is having the desired effect.
News yesterday that the number of Australians in jobs had dipped for the first time in 19 months sent the Australian dollar diving almost one complete US cent as
Ross Gittins does the maths in his Saturday column:
"Since the budget hasn't eased inflation pressure in any significant way, it certainly hasn't reduced the possibility that further increases in interest rates will prove necessary."
And he follows it up today Monday examining what actually was cut:
"The more closely you study last week's budget the less impressive it is."
Blogotariat is a platform to enhance the role of blog commentary and its growing influence on Mainstream Media and the political process – the great contest of ideas essential to a civil society. If you wish to contribute editorially or add your blog please use the Contact menu to send some info.
