Before the big four banks started softening up the market for an out-of-cycle interest rate rise without an unfolding global financial crisis to point to, business commentators could only speculate on what the Reserve Bank was going to do each month. In this morning’s Distillery, there’s still plenty of room for that, with The Sydney Morning Herald’s Ian Verrender arguing a cut is probably needed if for no other reason than to take some heat out of the Australian dollar. But now the discussion isn’t so much about what our central bank does, but what our centralised banks do. Elsewhere, a number of business writers are in agreement that the Perpetual board has been a perpetual disappointment of late and needs serious renewal.
But first, The Sydney Morning Herald’s Ian Verrender says the Reserve Bank of Australia will be torn about whether to stimulate or conserve its interest rate reserves, but the Australian dollar should be a crucial factor.