More proof, if any were needed, that the RBA acted hastily and irresponsibly in putting up interest rates during election campaign.
They are not now expected to raise rates until August because of the credit squeeze initiated by the US sub-prime crisis. This crisis is old old news and happenned immidiately after the the second last rate rise by the RBA. It's likely affects should have been taken into account for about 6 months now.
But the RBA smuggly shrugged off any warnings of a threat to the economy from the US. Stubbonly arguing that Australia was immune to the US downturn. Do they believe we are more closely tied to China now? This sounds alot like the Rudd line to me. In any case this was and has been proved to be bullshit.
In the wake of the sub-prime crisis the RBA increased rates unnecessarily. They squeezed the banks who are now passing increased costs on to mums and dads. The chrissy presents were all bought on higher-interest credit cards this year because the money had already gone on the Mortgage.
I believe that the RBA are not independent but partisan, either that or grossly incompetant. They acted on behalf of the ALP to topple Howard.
Was Rudd complicit in this betrayal of his beloved 'working families'? Well let's not forget he rewarded the RBA with greater influence immediately after being elected. You decide
