It would save the Budget $1m a year to keep the cash rate at neutral forever without all of the fuss:
Markets have stopped believing Dr Lowe anyway with the AUD selling hard when he held his neutral position:
And bond markets bidding aggressively:
The brick is cheap and incorruptible. More to point for market observers slumped in Phil Lowe ennui, the stagnant message and awkward prose of the monthly statement:
The low level of interest rates is continuing to support the Australian economy. Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual. Taking account of the available information, the bank judged that it was appropriate to hold the stance of policy unchanged at this meeting. The bank will continue to monitor developments and set monetary policy to support sustainable growth in the economy and achieve the inflation target over time.
Could be refreshed with rigorous contemporaneity and sizzling prose:
The low level of interest rates is continuing to support the Australian economy. Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual. Taking account of the available information, the Brick judged that it was appropriate to hold the stance of policy unchanged at this meeting. The Brick will continue to monitor developments and set monetary policy to support sustainable growth in the economy and achieve the inflation target over time.
What’s not to love?
