From the AFR:
A nine-member board acting as a “shadow” RBA said on Monday that the best option would be for the bank to keep the cash rate at 3.25 per cent.
“Up until now the government has been arguing there would be a fiscal surplus and that would make room for the RBA to cut rates,” former RBA board member and shadow participant Warwick McKibbin told The Australian Financial Review.
“But if the government is now backing off there being a surplus . . . perhaps that needs to be revisited,” he said.
…Professor McKibbin said his guess was that the RBA would cut rates today, but warned it would be the wrong decision.
“My guess is there are fairly strong views within the bank amongst the staff to keep [official rates] where they are, and then there are different views around the board table,” he said.
Voting for a hold were Professor McKibbin, James Morley, Mark Crosby, Mardi Dungey, Bob Gregory, Mark Thirlwell and Saul Eslake. Jeffrey Sheen was neutral. Paul Bloxham voted to cut.
I’m with Bloxo! Cut today then sit in your hands.
