Henry Thornton writes:

Late last year the main risk to
the “miracle economy” was hubris. Now that the over-optimism has
receded there’s a new danger – the major and overt difference of view
between Treasury and the Reserve Bank. To this must be added the
obvious leadership tension within the government. Internationally, the
stand-off between the two most important trading nations – China and
the US – is adding to the uncertainty.

Nothing worries small
children so much as a squabble between mum and dad. If current
leadership tensions both at bureaucratic and political levels are not
soon resolved, the risks to Australia’s economic prosperity will rise
exponentially. This is our theme as the Reserve Bank’s board meets
today. Our views on the outcome are linked below.

Read more here.

Peter Fray

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