Philip Lowe finally ran out of "patience." After months spent insisting the RBA would wait to hike rates despite a coordinated shift from the bank's global peers, Lowe acquiesced on Tuesday with a 25bps move. It was the first hike since 2010 (figure below). Lowe called the decision "preemptive" -- a shot across the bow aimed at ensuring "inflation psychology" doesn't "shift in a durable way due to the recent higher inflation outcomes," as he put it. "Given the outlook for the economy and in
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G’Day Walt. Greatly appreciate your quick response to today’s RBA rate hike. Who would have thunk that the little Aussie bleeder would get in before the mighty Fed. Amazing how timid supposedly independent monetary authorities are in the face of overwhelming evidence that courageous action is required. As always, your timely international coverage places your site at the pinnacle of global political-financial commentary. Every day is a good day for those of us fortunate to have access to your writing. As always, many thanks. Eck.