Zenith Finance Blog

RBA Finance

RBA Fat Cats…what on earth are you thinking???

You’ve probably heard that the RBA today announced interest rates are not dropping.

Well, I’m annoyed! Not just about the rate news, but the lily-livered reason they’ve given us in their media release.

Does Australia lead by example or are we just the ‘lacky’ country?

I find it outrageous that a statement by the RBA justifying Australian interest rates staying on hold begins with two paragraphs all about what’s happening in Europe, the United States and Asia.

Obviously, when you’re on a nice, big, juicy salary with benefits working in monetary policy for the RBA -making decisions on behalf of the Australian people – things seem pretty good.

However, many customers and businesses that we deal with are telling us what a soft start to the year it’s been. Sales have been slow and they were all looking forward to a February fall in interest rates.

Hey RBA, want 6 good reasons you got it wrong?

Easing inflation, commodity prices dropping, record food prices, a soft labour market, weak retail sales and record exchange rates.

Dear Fat Cats, looks like you definitely screwed the pooch this time.

Perhaps when you get a chance over the coming month, squeeze out of that comfy leather chair, take a ride down from the executive floor and see what’s happening out in the real world. Then make it up to Australia in March and we might even start liking you again.

Ahh, that feels better.

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