Economy going nowhere so RBA cuts rates just for something to do

For the record, the RBA is now as useless as the rest of the central banks of the world. This is from Glenn Steven’s statement today. I have highlighted the best bits, the ones that show how dead in the water the economy is:

In Australia, recent data suggest that overall growth is continuing at a moderate pace, despite a very large decline in business investment. Other areas of domestic demand, as well as exports, have been expanding at a pace at or above trend. Labour market indicators continue to be somewhat mixed, but are consistent with a modest pace of expansion in employment in the near term.

Recent data confirm that inflation remains quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.

I will only add that so long as we have a Prime Minister and Treasurer who think the NBN represents good policy and will contribute to growth, we will be living in an economy that is going nowhere.

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