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Speaker 1: If growth is the game we're in, then the Reserve

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Speaker 1: Bank should keep cutting interest rates. The problem with growth

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Speaker 1: is it's not the game therein they're in the business

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Speaker 1: of taming inflation, and that's about it. The government ditched

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Speaker 1: the duel mandate, remember this introduced by the last lot

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Speaker 1: that saw Adrian Or and co. Also focus on keeping

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Speaker 1: people in jobs. They called it maximum sustainable employment. That's

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Speaker 1: now gone. And inflation is the aim of the game,

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Speaker 1: and inflation is in the band. So the bank is

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Speaker 1: going to take things slow. They're going to ease the

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Speaker 1: next few cuts over a longer period of time, basically

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Speaker 1: for fear that they'll overcook the whole thing again. They

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Speaker 1: will be thinking, of course about Trump and his tariffs

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Speaker 1: and the fear of price hikes, even though these haven't

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Speaker 1: materialized even in the data out of the United States

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Speaker 1: as yet. They'll be worried about the Middle East. They'll

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Speaker 1: be worried about the price of oil as a result

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Speaker 1: of the Middle East. It's an important cost, of course,

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Speaker 1: and it's in everything, not just our cars, transport of goods, production,

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Speaker 1: you name it. Directly and indirectly contributes up to thirty

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Speaker 1: percent of our inflation. When the price is high, like

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Speaker 1: when somebody's dropping bombs in the Middle East, But that

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Speaker 1: wouldn't be my main concern if I was setting monetary policy,

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Speaker 1: not that anyone would let me. Sure, we'll get a

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Speaker 1: solid growth number of around zero point seven percent for

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Speaker 1: quarter one on Thursday. But there's been a couple of

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Speaker 1: signs this week, just a few little ones, that things

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Speaker 1: are a bit shaky for quarter two, the one we're

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Speaker 1: in now this year. Yesterday it was May Day calls

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Speaker 1: from the services sector going backwards for the month again,

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Speaker 1: this time a bigger drop than last and again way

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Speaker 1: out of whack with our trading partners. And our golden

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Speaker 1: dairy run will continue, don't worry. I'm not saying that won't.

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Speaker 1: But there are signs, early signs that production is going

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Speaker 1: to be ramping up around the world, and of course

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Speaker 1: that affects the price, brings it down. Cutting rates sooner

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Speaker 1: and faster would help avoid any surgical complications as we

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Speaker 1: revive the economy which has been, let's face it, a

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Speaker 1: very sick patient for a very long time. For more

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Speaker 1: from Early Edition with Ryan Bridge, listen live to News

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Speaker 1: Talks at b from five am weekdays, or follow the

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Speaker 1: podcast on iHeartRadio,