In today’s Crikey! Glen Dyer tell us that the RBA has been “caught badly short”.
In the statement accompanying today’s decision to hold rates at 6.75%, the RBA recognised the worsening in global conditions. In fact the sharp increase in turbulence and volatility was why interest rates remained on hold:
The Board remains concerned about the outlook for inflation. But given the heightened uncertainty about the international outlook and the local trends in wholesale borrowing costs, both of which could have a bearing on inflation over the medium term, it judged that the current stance of monetary policy should be maintained for the time being.
But the minutes from last month’s Cup Day meeting, which were released today, show a much more sanguine view of the global economy and financial market conditions.
No doubt Mr Dyer is a good conscientious journalist, but so inured is he to the breathless phrases of journalistspeak that a sober change of mind by a sober, sensible agency in response to changing circumstances shows that it is being “caught badly short”.
As my thirteen year old daughter would say . . . “whatevs”.