I was once a fan of Mr Lowe. He had a little chutzpah when he took on the Greenspan doctrine at the turn of the millennium. But, like so many in Australian public life, the institutional mincer grinds that out of you before you reach the top, via the AFR:
Paul Dales from Capital Economics says there’s a role for the bank to be as open as it can about where the economy is heading but by “being more optimistic than its own forecasts, there’s a danger the RBA has moved from signal to spin…it’s a bit worrying that more recently this signal has become somewhat detached from the RBA’s actual forecasts,” Dales said.
In February, after the bank met to discuss the official cash rate, it said it’s base case was for the economy to grow at about 3 per cent over the next few years.
