Australian Herald-Sun RBA watcher Terry McCrann is out with his latest follow the soft Australian retail sales report today.
He takes issue with comments from former RBA director Warwick McKibbin, who called for rate hikes a day earlier in The Australian.
McCrann said that Australian interest rates are at the proper level but that, if anything, a case could be made for cuts.
Unfortunately, for an economist who usually has something substantive to contribute, this was another all-too common example of, what I call, very clever people saying very silly things.
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There is no way that the detail in yesterday’s retail sales would justify higher interest rates; indeed they could be used to sustain an argument for a rate cut.
