Next Interest Rate Move - Up
There is no doubt in my mind that the RBA was bullied into cutting interest rates last week.
The charade of an independent central bank continues notwithstanding the Treasury Secretary and Distributor in Chief Stephen Kennedy also having a seat.
Conveniently too, two (too two - get it) current RBA directors will be stepping off with the new monetary policy board forming for the next meet. Those two (Schwartz and Rubin) won’t have to worry about the consequence.
But looking at the economics …
full employment.
$13 billion, with a b, of spending announcement even before the election is called ($3b for NBN, $8.5b for Medicare, $2b for Whyalla).
as at today, 25 February, Commonwealth gross debt is $945.2 billion. Just a small $25 billion increase in 2 weeks.
And this is just the Commonwealth government.
Yeah. The more it goes, the more it feels to this little black duck that the next interest rate move will be an increase.
A nice gift to the next government, whomever that may be.
As an aside, as one of my high school teachers would say, today I came upon a fantastic other Aussie SubStack. This one is particularly excellent:
