Given that interest rates have been kept the same at 4.75% for 11 months, how would you go about describing monetary policy stance as a whole after this rate cut?
Just say exactly what has happened, the RBA took the view that a slightly restrictive stance was in order since November last year due to x,y and z, however due to x subsiding, new data for y and the persistence of z, the RBA decided that a rate cut was in order and it's now around the neutral level.
how do I solve for x, y and z?
haha, I just put in random letters, choose any three economic demand factors that you know have affected inflation and she'll be right. There's hundreds you could choose from
![Smiley :)](https://www.atarnotes.com/forum/Smileys/default/smiley.gif)
off the top of my head:
consumer caution
mining boooooooom
euro zone debt cirsis
japanese earthquake
high AUD
retail sales growth
manufacturing sector decline
(half of those listed above are interconnected anyways)