W&D got it wrong...
...not for the first time, Mrs W&D would say. Last week's heroic prediction that the RBA Chief Teller wouldn't lower interest rates proved to be incorrect. A sheepish W&D begs forgiveness.
But hastens to add that the chickens will come home to roost on this. Extremely low interest rates have done little but create fiscal engineering and investment in financial instruments and property. But have not encouraged companies to invest.
Lazy company executives and their equally lazy directors have preferred to borrow and pay out higher dividends.
And delightfully, the threat of a Royal Commission into banks ensured, with one exception, a compliant bank response.
Was it as much as a nanosecond after the RBA's announcement that the other banks followed suit in lowering rates by the same measure?