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Last week’s monetary policy committee meeting basically announced that there was no free lunch for the government now or during the recovery period to come.

The Reserve Bank committee reinforced the fact there is no substitute for real growth and that simply inflating your way out of crisis driven debt is hardly the first best option. With likely only a 25 basis point or so cut left it therefore becomes all about the ability of the private sector to lift the economy out of this rut...

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