Friday, August 15, 2008

Merv swerves but will weebles wobble?

The primary objective of the monetary policy committee is to deliver price stability which means low inflation. Secondary to this, its objective is to support the Government’s economic goals.

Unfortunately there is a lot of pressure (by vested interests) on Merv "the swerve" et al. to consider dropping interest rates at a time when they are running behind an inflation rate that is still growing.

Personally, I think Merv has done a grand job (except for the swerve) and the blame for current crisis is firmly with the city. Despite all the caterwauling this is not the time for the MPC to wobble from its prime directive.