Politicians must cut spending to avoid interest rate increases
The challenge for the monetary policy mandarins is that politicians are pumping the economy full of more and more unproductive cash, driving inflation higher.
The outlook for interest rates appears highly uncertain at present with striking global cross-currents. What we do know is that spendthrift Aussie politicians will 100 per cent bear the blame for any interest rate hikes that do materialise.
Christopher Joye is a portfolio manager with Coolabah Capital, which invests in securities, including those discussed in his column. Connect with Christopher on Twitter.
