And it would be more politically sensitive to hike rates 1/4 points now than closer to the election, PLUS, doing so now will hopefully temper whatever expansionary (ballot-buying) budget is released before the election.
It's 9:30. And we are lucky to have an independent CB in Australia. But don't forget that the RBA board members are appointed by the commonwealth govt. so while if absolutely needed I'm certain they would not hesitate to change mon. policy close to an election if the macro conditions warranted - I think that where practical, they would sooner work around the electoral cycle. Plus the CB has been under so much criticism from the Lib. party because they stupidly promised low interest rates last election and the public, not knowing any better, gobbled up the bait - so while hiking rates against the election-wishes of the incumbents will gain the RBA great credibility in the eyes of economists, constant media outcry by the Lib. party over the RBA's "reckless" rate hikes (reckless towards the 'mortgage' belts in the electorates in suburban NSW/VIC - where failure to raise rates would be reckless towards 'boom' areas like WA, SE QLD where the housing market is still very frothy and wage/inflation pressures are huge) tends to undermine the RBA in the general public's eyes. Remember that the ultimate target of mon. policy is to change aggregate demand (to change inflation) - of which consumption is the main element - and middle-australia is the nation's "consumer". The RBA has even explicitly targetted consumers in its publications, warning of excessive spending and rising personal debt levels. Anyway, to more pertinent issues: I wonder what this morning holds.....
Us minority voters in the poll got it right. I was really concerned for the property prices in the morgage belt and the impact. Good decision.
If people are that silly then so be it.Let's face it, people will be lining up at Harvey Norman, with plastic afoot to hock up a plasma. Bit of a sad world this buy today/ pay tomorrow concept, except for houses of course.
Let's face it, people will be lining up at Harvey Norman, with plastic afoot to hock up a plasma. Bit of a sad world this buy today/ pay tomorrow concept, except for houses of course.
so true and it is common place now to randomly call any one and convince them they need a credit card.
God I can't stand those pushy pricks trying to convince me why i need a credit card!
I believe the RBA is independant of political bias
Really, is anyone free of political bias? Do all the RBA board members vote informal at elections? lol
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