And the rising $A is certainly making its job easier, by generally cooling activity.Growth within the Construction industry appears to have fallen to its lowest level in 18 years. Although turnover for mining and processing plants has once again returned to its path of upward growth.
The RBA will need to think long and hard on the CPI figures released today. Because at this point, consumer expectations for inflation seem to be running above those for the Bank.
It would appear the RBA have been longing for a clear indication, to justify a further increase in the current cash rate.
In recent times, the RBA has not been presenting an ideal way forward … by simply leaving the major banks to do its job by default.
Now is when the RBA Board needs to regain the initiative and provide some strong direction — because people are becoming confused, desperately trying to interpret what comes out of each monthly meeting.