“Backbone” Phil as I call him yesterday delivered the most forceful hold in interest rates that I can recall in weak circumstances:
Conditions in the global economy have improved over recent months. Business and consumer confidence have both picked up. Above-trend growth is expected in a number of advanced economies, although uncertainties remain. In China, growth was stronger over the second half of 2016, supported by higher spending on infrastructure and property construction. This composition of growth and the rapid increase in borrowing mean that the medium-term risks to Chinese growth remain. The improvement in the global economy has contributed to higher commodity prices, which are providing a boost to Australia’s national income.
No mention of China tightening, nor of the the already underway price reversion in bulk commodities.
