The Reserve Bank of Australian has fended off suggestions that their decision to cut interest rates, and Scott Morrison handing down his first budget, on the same afternoon, are in any way related. The RBA has instead insisted that the decision was taken due to an anticipated “sudden drop of confidence this this evening” though dismissed any links between the confidence drop and the rate cut as “village gossip.”
In a short interview with The (un)Australian, the Governor of the Reserve Bank, Glenn Stevens stated that his decision to sell his stocks in Australian manufacturing companies, his decision to take our private health insurance and his decision to purchase shares in French submarine manufacturing companies were also “just a coincidence.” Governor Stevens added that the decision to bring forward the cut in the cash rate from May 10 to May 3 was also “just a coincidence.”
Today’s decision to cut interest rates is the first action the Reserve Bank has taken on interest rates in 11 months. This action brings to an end to a wager within the board as to how long the can get away with “doing absolutely no work whatsoever” without anyone noticing.