That’s two misses in a row for me! Not that I blame myself. Judging RBA moves has become a game of reading the mood of mysterious bubble managers. There is no objective basis on which to make external judgements.
That’s the lesson from the last two meetings. In traditional monetary policy terms, the economy needs lower interest rates and a lower currency but the RBA is not going to cut until housing slows again, either through exhaustion or macroprudential policy.
The view from Martin Place is now filled entirely with the bubble.
