Thank Christ. Sense seems suddenly to have prevailed among the elites. The PM told ABC radio this morning that:
We have growing sectors of our economy that are under pressure from the high Australian dollar…We have low interest rates by historic standards in this country, but compared with a number of countries around the world that effectively have interest rates at zero or a quarter of a per cent, if you’ve got a lot of money and you’re a global investor, Australia is a good place to put it…That is boosting the value of the dollar up. That is bringing pressure on and the Reserve Bank is acutely aware of that…They said they had scope to reduce interest rates, there’s further scope there should the Reserve Bank choose to use it, so that’s one of the ways we can support industries like manufacturing at this time.
Just the jawboning support required.
