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Originally Posted by Paul Haese
 this is such a laugh.
Two things need observation. If the economy is in such good shape why have the reserve bank dropped interest rates consistently for the last three years? It is now currently at 30 year lows. They only do this if the economy is struggling. Other sectors are showing recession. Fact!
Secondly based on the former one should cut back on ones spending before going to the bank once more and finding nothing in the account. Economics 101. 7 years of deficits don't show fiscal management. |
We are still at 2.75%, much better than most other countries. US and Japan, two of the major economies are at or near zero percent. So, on that basis, we are still doing better than others. If you really want to know why the reserve banks drops interest rates, read the minutes. Mind you, it is very dry reading, so if you have insomnia, this might help
It isn't as cut and dried as you suggest, there are global factors in play also.