Well that was entirely predictable.
A bank economist notes that while inflation is under control the Central Bank has no excuse not to further goose the demand for top quality debt merchant product with even juicier bait rates.
Of course no mention of the fact that the reason the economy outside mining has been verging on a coma for the last few years is that the household sector are gagging on the IOUs they sold the debt merchants over the last 17 years.
Nope, no mention of that at all.
The only cure for that affliction according to a Bank economist is for the Central Bank to try to lower the price of debt even further (until the CAD blocks that strategy) and attract the debt junkies who never say never.
It will be interesting to watch the RBA try to reduce the dwindling carry trade differential just as the international love affair with Oz and commodities is coming to a close.
The supply of CCP duffle bags full of cash seems to be drying up as well.
Perhaps Mr Robb’s boot sale of Aussie assets will earn us some chump change.
A nice low dollar should fill our beaches with tourists looking for a back rub and a jug of home brew.