Australia press: Australian government not happy with RBA neutral bias on interest rates

Author: Eamonn Sheridan | Category: Central Banks
  • A report in the Australian Financial Review (gated) overnight says that the move by the Reserve Bank of Australia (RBA) to a “neutral bias” on monetary policy has angered the Abbott government
  • Treasurer Joe Hockey is said to have to personally made the government’s displeasure known to the RBA as the dollar’s rise will exacerbate budget challenges
  • Senior government sources told the AFR that while the government appreciated the RBA’s concern about property prices, the change to a neutral policy setting had been a major factor in the recent jump in the value of the local currency

The government has also said in the past that it supports RBA independence on monetary policy. Go figure. What a surprise they aren’t happy now rates appear to have stopped falling. Predictable ****ers, aren’t they?