Is cutting rates now a bit desperate?

This comment was made this week at http://www.macrobusiness.com.au  (link may be locked)



My preference is that they are not talking about currency simply because the objective of the cuts remains the Debt Machine and the RBA would state if the objective of the cuts was to influence the exchange rate. Afterall it is not as though market in Fx by a CB is anything weird.

Mainly just illustrating that if one accepts, as many seem eager to, that the rate cuts are all about softening the dollar then it is an exercise in currency manipulation and one without an explicit acknowledgment of that objective by the RBA.

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