RBA coin toss lands on hold

Which is more important, a 25% monthly collapse in the price of your main export or a raging housing bubble in your largest city?

It’s a tough call, however the RBA has a rigorous methodology for addressing the dilemma:

6a00d83451df4569e20133f221cbea970b

Here’s the full statement.

It’s highly unlikely this decision will cool housing speculation over the next month in any noticeable manner. And it’s equally unlikely that iron ore will rebound materially in that time. (Despite being due for a bounce, Chinese steel futures are selling off again today.)

So stay tuned for next month’s coin toss.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s