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Speaker 1: Well, I think it's fair to say that the GDP

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Speaker 1: print has come in. It's something of a shock. The

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Speaker 1: Reserve Bank was picking a contraction of zero point three percent,

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Speaker 1: The consensus was a contraction of zero point four percent.

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Speaker 1: The worst case prediction from one of the banks was

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Speaker 1: a contraction of zero point five percent. It's come in

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Speaker 1: at a contraction of zero point nine percent, which is

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Speaker 1: basically twice as bad as most of us thought. Now,

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Speaker 1: the immediate problem that we have is what this is

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Speaker 1: going to do to confidence, because people are already scared.

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Speaker 1: That is why it's taking this country so long to

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Speaker 1: come out of reception recession, because every single piece of

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Speaker 1: bad news like Trump's tariffs earlier this year, freaks us

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Speaker 1: out all over again, so we keep our wallets shut

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Speaker 1: for longer. There are people out there who absolutely can

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Speaker 1: afford to spend more money. They are choosing not to

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Speaker 1: because they do not know that they can trust that

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Speaker 1: we're through the worst of it. This is part of

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Speaker 1: the reason, if not one of the bigger reasons, why

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Speaker 1: the Reserve banks cuts to the ocr are not stimulating

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Speaker 1: the economy like the Bank thought that they should be.

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Speaker 1: And this number that we see today, I fear is

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Speaker 1: going to do this all over again. It's going to

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Speaker 1: free us out all over again. And I think the

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Speaker 1: reason we're going to be freaked out all over again

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Speaker 1: by this is that we think that the people who

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Speaker 1: are in charge, mainly the Reserve Bank but also the government,

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Speaker 1: who keep telling us that the economy is definitely recovering,

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Speaker 1: really have no idea how bad this is now. I

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Speaker 1: think it is a little unfair to blame anyone but

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Speaker 1: the Reserve Bank right now, because they really deserve it.

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Speaker 1: The verdict is in on this now, isn't it. They

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Speaker 1: have well and truly stuffed this up. They have no

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Speaker 1: idea what is going on in this economy. In July,

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Speaker 1: which is only one month after Q two ended, right,

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Speaker 1: we've just gone through this massive contraction. In the next month,

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Speaker 1: they decided they didn't need to cut the cash rate anymore.

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Speaker 1: They held the cash rate that now should blow your mind.

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Speaker 1: Just a month ago they released their Monetary Policy statement

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Speaker 1: forecasting the contraction at only zero point three percent. They

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Speaker 1: got it wrong by a factor of three. Now, what

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Speaker 1: them getting it so badly wrong now means is that

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Speaker 1: the pressure is on them to fix this, and fix

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Speaker 1: this fast and do a double cut in October. Really

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Speaker 1: more to restore confidence than in think, because confidence is

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Speaker 1: what we are very much lacking at the moment. For

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Speaker 1: more from Hither Duplessy Allen Drive, listen live to news

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