Reserve Bank of Australia: Be the King

Have you seen the latest Eftpos ad?  It depicts ordinary Australians as Kings and Queens of their finances because by using Eftpos they only spend money they actually have.

It’s a great message.  Sensible and sage advice although it did get me thinking.  We’ve all become so committed to saving money that our retail sector and small businesses are now in crisis.

Research shows our savings are at record highs.   As we tighten our wallets worried about interest rates, petrol prices and the rising cost of gas and electricity, our small business owners are in real financial pain.

If the RBA really is the arbitrator of the economy then the time has come for real leadership. We need the RBA to inject the economy with some confidence. 

Our King needs to help his minions loosen their purse strings (just a little bit) and the simplest way to do it is by reducing interest rates next Tuesday.

Come on RBA.  Be the King!