I think the RBA’s done the right thing – yes, GDP (output or “suuply” only rose 1.5% over 2004 but demand rose 4.1%. The gov’t has been busily stoking demand whilst ignoring the supply side, and now it (and borrowers) will pay the price.Did you notice from today’s data that productivity growth turned negative during 2004?

Get more Crikey, for less

It’s more than a newsletter. It’s where readers expect more – fearless journalism from a truly independent perspective. We don’t pander to anyone’s party biases. We question everything, explore the uncomfortable and dig deeper.

Join us this week for 50% off a year of Crikey.

Peter Fray
Peter Fray
Editor-in-chief of Crikey
50% off