As expected, the Reserve today announced no change to cash rates. This was widely expected, even by us. Instead the appointment of directors is the focus of Reserve Bank stories. The big, new issue is the AFR’s allegation that the ATO failed to follow its own “prosecution policy” in the case of the Gerard affair. This issue is getting murkier and murkier. We await the next exciting instalment with bated breath.

The Oz takes the opportunity to advise the Treasurer to forget the blame game and get serious about tax reform, which raises a cheer in the Thornton household.

The big economic issue today is the news from the USA. Factory production has bounced back and US productivity has surged. With Australian productivity sagging, this is a serious issue.

Read more at Henry Thornton.