Reserve Bank economic growth

While the "rate rise looms" crowd abandoned predictions of a Cup day interest rate rise a while back -- pushing into 2018 the eagerly awaited tightening of monetary policy -- this afternoon's Reserve Bank decision to keep rates on hold will be carefully parsed for the Bank's view of the economy -- and how far into 2018 we might have to wait for a rate rise, assuming we get one. 

Some historical context: the RBA cash rate has been below 2% now for 18 months, and below 3% since Julia Gillard was prime minister. There hasn't been a rate rise since 2010. At no point in that time have we had either the economic growth or the inflation to warrant a lift in rates, despite successive governments pumping tens of billions of dollars a year of deficit spending into the economy.