The Reserve Bank of Australia have this morning announced the third cash rate rise since the re-election of the Howard government. The cash rate is now 0.75 basis points higher than it was at the 2004 federal election.
Hardly what voters expected when Howard assured them of his government's credentials as managers of the economy. One of two things must therefore be true, they aren't great managers, or the limits of their managerial control was overstated for effect.
It's mostly the latter. Government's tend to overstate their influence over the day to day peformance of a largely deregulated and globalised economy and this situation exemplifies the risks.
2 days ago