Economy

Nov 21, 2012

The RBA versus the new normal of uncertainty

The Reserve Bank is trying to make monetary policy in a difficult period of uncertainty both domestically and globally. Glenn Dyer and Bernard Keane report.

Despite a widespread belief that we will get another rate cut as soon as the December board meeting, don’t bank on that happening as automatically as some think after last night’s speech from RBA Governor Glenn Stevens and the release earlier yesterday of the minutes of the November 6 board meeting. That also seems to be the understanding of currency markets with the dollar remaining solid at either side of $US1.04, where it has been trading for much of the past couple of months.

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One thought on “The RBA versus the new normal of uncertainty

  1. Robert Groom

    The RBA Board and Glenn Stevens live in some parallel universe where they think because global economic conditions have improved marginally then that is a good enough reason not to make another immediate rate cut here. The RBA should be cutting aggressively and promoting growth as much as possible. If you want improvements to productivity start with the high real cost of money!

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