Latest / Early Edition with Ryan Bridge / Ryan Bridge: The economy's been a sick patient for a long time

Transcript

Ryan Bridge: The economy's been a sick patient for a long time · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: If growth is the game we're in, then the Reserve
• 0:03
  Speaker 1: Bank should keep cutting interest rates. The problem with growth
• 0:07
  Speaker 1: is it's not the game therein they're in the business
• 0:10
  Speaker 1: of taming inflation, and that's about it. The government ditched
• 0:14
  Speaker 1: the duel mandate, remember this introduced by the last lot
• 0:16
  Speaker 1: that saw Adrian Or and co. Also focus on keeping
• 0:19
  Speaker 1: people in jobs. They called it maximum sustainable employment. That's
• 0:25
  Speaker 1: now gone. And inflation is the aim of the game,
• 0:28
  Speaker 1: and inflation is in the band. So the bank is
• 0:31
  Speaker 1: going to take things slow. They're going to ease the
• 0:34
  Speaker 1: next few cuts over a longer period of time, basically
• 0:37
  Speaker 1: for fear that they'll overcook the whole thing again. They
• 0:40
  Speaker 1: will be thinking, of course about Trump and his tariffs
• 0:43
  Speaker 1: and the fear of price hikes, even though these haven't
• 0:45
  Speaker 1: materialized even in the data out of the United States
• 0:47
  Speaker 1: as yet. They'll be worried about the Middle East. They'll
• 0:50
  Speaker 1: be worried about the price of oil as a result
• 0:52
  Speaker 1: of the Middle East. It's an important cost, of course,
• 0:55
  Speaker 1: and it's in everything, not just our cars, transport of goods, production,
• 1:01
  Speaker 1: you name it. Directly and indirectly contributes up to thirty
• 1:05
  Speaker 1: percent of our inflation. When the price is high, like
• 1:08
  Speaker 1: when somebody's dropping bombs in the Middle East, But that
• 1:11
  Speaker 1: wouldn't be my main concern if I was setting monetary policy,
• 1:16
  Speaker 1: not that anyone would let me. Sure, we'll get a
• 1:19
  Speaker 1: solid growth number of around zero point seven percent for
• 1:22
  Speaker 1: quarter one on Thursday. But there's been a couple of
• 1:24
  Speaker 1: signs this week, just a few little ones, that things
• 1:27
  Speaker 1: are a bit shaky for quarter two, the one we're
• 1:30
  Speaker 1: in now this year. Yesterday it was May Day calls
• 1:33
  Speaker 1: from the services sector going backwards for the month again,
• 1:37
  Speaker 1: this time a bigger drop than last and again way
• 1:41
  Speaker 1: out of whack with our trading partners. And our golden
• 1:44
  Speaker 1: dairy run will continue, don't worry. I'm not saying that won't.
• 1:48
  Speaker 1: But there are signs, early signs that production is going
• 1:51
  Speaker 1: to be ramping up around the world, and of course
• 1:53
  Speaker 1: that affects the price, brings it down. Cutting rates sooner
• 1:57
  Speaker 1: and faster would help avoid any surgical complications as we
• 2:02
  Speaker 1: revive the economy which has been, let's face it, a
• 2:06
  Speaker 1: very sick patient for a very long time. For more
• 2:11
  Speaker 1: from Early Edition with Ryan Bridge, listen live to News
• 2:14
  Speaker 1: Talks at b from five am weekdays, or follow the
• 2:17
  Speaker 1: podcast on iHeartRadio,