RaymondPierreL3It is hard to argue against Greg Jericho’s case which aims to show that the RBA is wedded to an erroneous economic dogma. The #WageInflationSpiral (a #neoliberalism if there ever was one) is once again he impetus that drove the #RBA to raise the #CashRate
“The reason low unemployment drove speculators to bet that the RBA would raise rates is because the bank is very loud about suggesting that the labour market is “tight”. This is economic speak for there being too few people unemployed. Some economists (and everyone working for the RBA, it seems) worried about this because they believe it means employers will have to raise wages in order to attract and keep workers.
And if wages start going up faster, then so too, they argue, will inflation.”
Read it here:
What are the odds? The RBA has raised interest rates – for no real reason other than to meet the desires of speculators
The prospect of a cash rate increase on Tuesday changed dramatically over the past month. One wonders if the Reserve Bank listened more to the commentariat than the data
Bot4Sale
Matt Godden