May 22, 2013

No, News Ltd, RBA’s rate cut had nothing to do with the dollar

News Ltd columnists were quick to proclaim that the RBA had cut rates to combat the high Aussie dollar. Turns out, that was a crock -- but where are their heartfelt apologies?

Glenn Dyer — <em>Crikey</em> business and media commentator

Glenn Dyer

Crikey business and media commentator

The minutes of Reserve Bank’s May 7 meeting that produced the surprise cut in interest rates make clear that the high value of the dollar had nothing to do with the decision, despite reports in The Australian Financial Review, The Australian and others.

Many reports in these papers and from private economists claimed the RBA had cut its cash rate 0.25 percentage points to 2.75% and had “joined the currency wars”, to quote a headline in The AFR on May 8 or a headline on the ABC’s The Drum website, which read “RBA sucked into undeclared currency war”, written by part-time columnist and host Alan Kohler (who is also at Business Spectator, owned by News Corp).

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2 thoughts on “No, News Ltd, RBA’s rate cut had nothing to do with the dollar

  1. Mike Flanagan

    There must be more column inches written ABOUT the Murdoch accolites and scribblers than their circulation or firewalled subscriber numbers.

  2. Mike Flanagan

    PS Thanks Glen for this obvious clarifier.
    Kohler’s incompetent interpretations and tea leaf readings are writ large over his past bumbling mutterings.
    How the ABC can continue to use him defies logic.

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