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March 03, 2020 18: 22:01
It was an unusual thing to see.
We just saw the Reserve Bank cut the main money rate to another historic low, an eye-watering 0.5 percent.
However the event was a diversion from the real story, which was occurring off-stage, in the heads of Prime Minister Scott Morrison and Treasurer Josh Frydenberg.
Both males have spent years playing a political video game in which they have actually criticised Labor’s (and Treasury’s) reaction to the international monetary crisis, which avoided an economic crisis, while heralding Australia’s near-30 years of continuous development.
Now, with worldwide economic headwinds turning into a dark cumulonimbus, the Reserve Bank has actually simply pushed Australia’s overnight cash rate towards the famous zero-lower bound, that point at which standard monetary policy deals itself out of the policy video game.
We’ve basically experienced the RBA pass responsibility for financial growt