Wednesday, 21 July 2010

Much ado about very little

It is a measure of how journalists yearn so strongly for something new to brighten up their election coverage that the governor of the Reserve Bank, Glenn Stevens,  got such a big run with his totally unexceptional comment yesterday about how his board would approach the August interest rate decision. Just as it did during the last election campaign it will do whatever it thinks economic conditions dictate should happen and a key among those conditions will be the consumer price index figures to be released before its meeting.
And what is the likely outcome? The Crikey Interest Rate Indicator tells virtually the same story today as it did before Stevens spoke. The most likely result is that nothing will change despite the best endeavours of the journalists to build a sense of shock, horror, drama.
21-07-2010 interestrateindicator
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