Interest rates should follow a mathematical model, not the whim of some unelected person(s) who has/have influence over the entire economy.
Seriously the RBA should be replaced by an algorithm, I can write it, it is so simple.
The RBA is a waste of space, and another crony controlled institution of our subjugation.
It is so pathetic, it reminds me of a tribes witch Dr reading tea leaves.
1st Tuesday of every month... bring out the tea leaves + the last month papers Phillip... The appreciation of the Australian dollar over recent months, driven in part by a broad depreciation of the US dollar, was weighing on domestic growth and contributing to subdued inflationary pressure, way to go Captain Obvious.
en.wikipedia.org/wiki/Tasseography
Why is rent . house prices, power, insurance premiums not included in the inflation target ... theses are necessities that should be looked at ..the RBA is supposed to hold an inflation target ...clearly it isn't ...!
If you ask me it is bcos money is literally infinite, but their mandate is to keep inflation to a target.
Inflation is essentially the depreciation of money through creation of it; so how do you reconcile an entity which wants to create as much money as it can while also keeping that rate 2-3%? Yup, you guessed it, distort the measurement by removing those aforementioned items.
How would it look if inflation was really running at 12%? Don't feel too bad we just copied the US.
Over here officials like to mix up Inflation with CPI, more avenues to distort and confuse.
FFIW...
CPI does include housing costs at a weighting of 22.3%.
www.abs.gov.au/ausstats/abs@.nsf/Lookup/6470.0Main+Features142011
The weighting is due to change in Dec 2017
www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/6401.0Feature+Article2Mar+2017
There is an article in the Guardian today pointing out that the RBA could do mortgages itself at much lower rates than the banks. It doesn't point out that even cheaper mortgages would just drive housing prices higher
www.theguardian.com/australia-news/2017/oct/13/which-bank-could-give-australians-a-better-bang-for-their-buck-the-rba
