Hate to say it, but I did tell you so...On this basis, the December rate cut was a policy error. NAB reports today via its widest and most comprehensive business survey:
"Business conditions strengthened in the December quarter, following a moderation in activity in the previous quarter, and were suggestive of an economy growing at around trend. The pick up in conditions in the quarter was attributable to broad-based improvements in profitability, employment and trading conditions. Forward indicators of near-term demand, including forward orders, stocks and capacity utilisation, all rose in the quarter, implying an expectation that domestic demand will strengthen a little in the first three months of 2012."
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