Let’s replace Phil Lowe with a brick

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?

Comments

  1. If we had a passive brick instead of Glenn Stevens we would be by now out of recession and with $0.5t less debt

      • That will only be worse now after 5 additional years of credit binge following cuts in 2011/2012

      • I’m with DrX.

        Dropping the rates was criminal, given the groundwork had NOT been put in place for there to have been any chance of the cheap credit flowing into anything productive.

        Indeed, as expected the cheap credit inflated a super-bubble in top of an existing property bubble, which was very much counter-productive and productivity destroying.

      • Population would probably be at.least 1 million less and with .5t less in debt the government could stimulate and reduce Ue through infrastructure projects. Standard of living ++. Not to mention the economic cycle reset that we still need to have anyway.

  2. Orangemanbadd

    One of the greatest curses facing human beings is their need to do something. It can sometimes give a false sense of accomplishment when doing nothing would have been the preferred path in hindsight. This was pretty much true throughout Cptn Glenn’s tenure as he incorrectly cut rates to try and offset a capex cliff by blowing another bubble in housing. If nothing had been done we’d have long recovered from the fallout from any capex cliff and have much lower debt and house prices today. Is there a death penalty for incompetence?

  3. GeordieMEMBER

    I shirt you not, when I was working as a foreman in a stockfeed mill, I started leaving a brick in change when I was out for deliveries, telling my staff when they run out of things to do they should think of other jobs that need to be done and then ask the brick if it was a bad idea. If the brick remained silent then it was a good idea and they should go do it.

    After installing the 2IC brick we got a bit more done each day.

    VOTE 1 BRICK.

  4. 2s and 5yr has inverted
    You’d think the 10 year will get whacked over next few months

  5. We are HOPING like all Fuxk that something somewhere blows the FUXKUP so we can blame it on the external event–otherwise we resign rather than eat our own sewerage.