RBA chief upbeat on economy

[Timmy]

RBA chief upbeat on economy

"RESERVE Bank governor Glenn Stevens has defied the doomsayers and predicted that Australia's struggling economy will begin to recover in the second half of this year."

Anyone see this? I have been of this opinion for a while 2twocents), but Mr. Stevens has a firmer basis for his opinion than me, better access to data, analysis etc.

Any thoughts, opposing views etc.?

 

[Prospector]

I look at the history of the RBA and the decisions it makes on interest rates. Just over 18 months ago their advice was to save save save and stop spending, and in order to make us stop spending, Interest rates soared. Now, they tell us we must spend spend spend and in order to allow us to do this it drops interest rates faster than gravity.

So, you think I am listening now?

 

[juw177]

What a load of crap.

 

[cwamit]

the reserve bank needs to talk up the economy, with almost 75 percent of it based on consumerism its important people spend money , once people start saving and become cautious. ie not eat out, no cinemas, puts off buying a new car , stop spending and borrowing then that all has a negative feedback loop, no need for annalists or anything of the such to tell you that...

my gut feeling is.. they will talk up the economy... but... it will only postpone the decline for several more months and by then the negative factors will overwhelm the public sentiment, once we start seeing 6 percent unemployment it will only further create a more cautious consumer which continues the negative feedback loop.

the stimulus plans are meant to be a multiplier but that multiplier in the economy is being suffocated and ineffective because people are trying to reduce personal debt levels.

time will tell.

 

[sinner]

I remember the first interest rate cut, a move completely without precedent, they held an emergency meeting 1 week before the scheduled meeting to make the cut. Running so scared they couldn't wait a week.

At this point I realised **** had hit the fan big time and they had no control over the situation and loaded up on gold :

If there is a recovery it won't be because of RBA policies!

 

[numbercruncher]

m8 thats like the CEO of Holden saying commodores are the best cars on the road or Richard Branson saying virgin mobile is the best choice for mobile telecommunications .... hilarious stuff ....

 

[Ageo]

lol i will never trust what a banking member has to say (especially when its the reserve bank).