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Richard Holden

No Christmas rate cut because Chalmers fought economic laws and lost

The treasurer made a bet he could spend expansively but still see multiple interest-rate cuts from the Reserve Bank before the next election.

Warren Buffett has a great aphorism: “When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.”

A corollary might be: “When a politician with an appetite for reform collides with the laws of economic gravity, it’s economic gravity that prevails.”

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Richard Holden is Scientia Professor of Economics at UNSW Business School. Connect with Richard on Twitter.

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    Original URL: https://www.afr.com/policy/economy/no-christmas-rate-cut-because-chalmers-fought-economic-laws-and-lost-20250102-p5l1mp