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2010-02-08

RBA got confused this time?

Comments on Adam Carr “SCOREBOARD: RBA of unreason”, 8/02/2010, http://www.businessspectator.com.au/bs.nsf/Article/interest-rates-Reserve-Bank-economy-inflation-fina-pd20100208-2FVV5?OpenDocument&src=sph

The RBA is now taking political considerations too early. They should have raised the official cash rate to normal levels that is also appropriate relative to inflation target.

Only in that case, when federal election is called they can afford to be more politically neutral in the campaign period.

Was that the RBA still felt the effects of the global recession on Australian interest rates?

Was RBA also confused/stunned by Copenhagen result on climate change? One may have to wonder.

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