mandate Josh Frydenberg
Treasurer Josh Frydenberg (Image: AAP/Mick Tsikas)

While politicians in Canberra yesterday indulged in some silly theatrics to mark the opening of parliament -- people in funny costumes, a speech by the representative of a northern hemisphere monarch, popguns on the front lawn, a church service -- the Reserve Bank continued to play the adult in the room, deciding a second interest rate cut to 1% was needed to make inroads on spare capacity in the economy.

When the politicians finally did get around to anything of substance in Canberra, it was about the sole item on the government's agenda, tax cuts, which in the immediate future will provide some modest stimulus to the economy but are otherwise irrelevant (though the press gallery, which is obsessed with reporting every trivial detail of Labor's position on the tax cuts, thinks otherwise).