I'll see your interest rate raise and raise mine by 2!

So Australians missed out on the predicted interest rate rise. I was saying to P that all the speculation on interest rate rises bugs the hell out of me.

For instance I heard one financial commentator say:

"Well there is likely to be an interest rate rise because the Reserve Bank likes to do these things in pairs"

Yes, in pairs, where is the economic rationale in that?

Another gem after the predicted raise failed to happen:

"It is likely the Reserve Bank will raise the rate in May, because that is what they usually do"

I have visions as a fly on the wall at a meeting of the Reserve Bank executive's:

"Okay I move a motion that we raise the interest rate rise because......... it's May. Anyone to second that?"

"Yes I do, and let's not forget that we do like to do these things in pairs!"

I feel so safe and secure being led to believe by the financial commentators that our economic future is based on such sound economic analysis.


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