From The Australian:
TONY Abbott has encouraged the Reserve Bank to consider a “prudent” intervention to drive down the dollar as manufacturers blame the currency for forcing them to cut jobs.
In a heavy hint to the independent central bank, the Prime Minister told parliament that the government’s actions had enabled the Reserve Bank to ensure the dollar was at the “best possible level” for the nation.
Mr Abbott argued that the government’s $8.8 billion investment in the central bank’s capital reserves would make it easier for it to intervene “prudently and appropriately” in the currency market.
The comment, a rare signal from a political leader on currency intervention, came as the Treasury released confidential advice showing the Reserve Bank board backed an increase in the capital reserves just before the federal election.
This is good stuff from the PM. Public policy should have had one voice on this for two years.
