EDITORIAL: Reserve Bank’s cheap money no cure
For many, the question isn’t whether the Bank is inconsistent, but whether it should have gone further to help an economy in free fall
23 January 2020 - 05:00
Central banks aren’t supposed to surprise the markets by moving against the consensus view, as it suggests that their forward guidance — provided through their public commentary and previous rates decisions — has been inconsistent or misleading.
So there were a few grumbles when the Reserve Bank cut the repo rate to 6.25% last week, since analysts felt conditions hadn’t changed materially since November, when the Bank stayed put...
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