Our Reserve Bank has been all over the place on monetary policy going back to last year.
There was the totally out-of-the-blue 50 basis point OCR cut last year. It may or may not have been substantively justified, but they never had a compelling rationale at the time and were reduced to dreaming up (quite reasonable) stories after the event. The concern about minimising the risk of falling expectations was one of those stories – good, but clearly an ex post rationalisation (since all the contemporary statements made little or no mention of the issue).
In the wake of that cut, the Governor gave quite a few interviews. One of the most substantial was with Newsroom’s Bernard Hickey (there is a full transcript at the link). In that interview – barely eight months ago – we learned that the Governor had no particular qualms about a negative OCR…
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Utopia, you are standing in it! 
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