The real person at fault is Jim “Chicken” Chalmers, who has forced through half-arsed RBA reform at the worst possible moment.
Still, when you get your chance, you’ve got to grab it, and the new governor Michelle “Blundering” Bullock ain’t done that.
Terry McRann is rightly incensed:
Just like the Fed, in December, our RBA was still talking – and so thinking – possible future rate hikes.
After of course that unfortunate Cup Day hike in November.
And I quote from the RBA in December: “Whether further tightening of monetary policy is required”.
Now, yes, I can fully understand that Bullock might be reluctant to do her 180, Powell-style, from meeting to meeting.
But she’s now seen how he did it.
And, for the first time in the 70-year history of the RBA, she – intriguingly, ironically, just plain interestingly, as the first female governor – is going to have to do or not do it in public and subject to questioning; not just via a statement.
Yep, the hard pivot is needed and coming. Blundering Bullock crushed the consumer in December.
In retail:
In jobs:
In borrowing:
In sentiment:
In spending intentions:
In prices:
Next up, business investment will crash:
Inflation is now miles below the RBA outlook and falling even faster.
Terry McCrann is right. Blundering Bullock crushed the consumer with her November rate hike.
It’s hard pivot vis the Fed on deck.
