[LINK] Three cheers for the Reserve Bank.

[Tom Koltai]

Yesterday the Reserve Bank of Australia seperated Australias economic
interests from the rest of the world.
It left the cash-rate at 3.25%. 

--The "Australian economy has not experienced the sort of large
contraction seen elsewhere," wrote RBA Governor Glenn Stevens in the
note that went out with the announcement. "The Australian financial
system remains strong and the monetary policy transmission process is
working to deliver large reductions in interest rates to end borrowers."

About time we divorced ourselves from US kamikaze economic destinations.
The ASX didn't like the move this morning.. But since when has the ASX
had australian consumers interests in mind? The status quo will begin to
accurately reflect the real value of gold for australians who will no
longer be tied by the apron strings to a falling US dollar (comparitive
to the gold index).
This is a good thing for our foreign economic policy and will see our
GDP rising slightly in the second quarter this year from the 4th qtr
slump of 2008 - (From increased export earnings due to the rising
disparity of the devaluing US dollar) - unless some silly people have
agreed to settle in US dollars on long term (over one month) contracts
in which case we may see some pressure on Stevens coming from RIO/BHP.

It would appear that there are some thinkers at the RBA, not merely
sheep.


Tom


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