Wayne sends Glenn a message

Wayne Swan is hoping that the Reserve Bank will keep Australia’s interest rates on hold, when its board meets in Sydney tomorrow.

The Treasurer is not bothering to hide that fact even though the board will, of course,  act independently, as usual.

In his weekly economic note, Mr Swan noted that the International Monetary Fund, itself, now believes that:”Premature exit from from accommodative monetary and fiscal policies seems a significant risk…” to the still troubled global economic recovery.

Just in case that might not be a big enough hint for the Reserve Bank Governor, Glenn Stevens, Mr Swan also took the precaution of  quoting Mr Stevens, himself, as well.

The Treasurer reminded Mr Stevens of the words the bank chief. himself, had used a few days ago, when he appeared before the Senate Economics Committee in Canberra.

Under questioning then, Mr Stevens had said:”I think it’s a bit hard to claim as of this moment that that there is too much growth in the economy.”

Hardly the time then, eh Glenn, to be raising interest rates again, as you have been so fond of doing over the past several months?

Is it?

Although Mr Swan didn’t use those last two sentences, exactly, he might as well have done, for all practical purposes.

There was, in fact, no way that the Reserve Bank board could miss the none- too- subtle message that the Treasurer was sending.

Whatever happens on rates,  though, this will be a big week.

Federal Parliament will be back – and the government is still at loggerheads with the mining industry over the  proposed resources super profits tax.

That has just become more personal, with a senior Labor Minister, Craig Emerson, calling reporters together to explain the substantial  Clive Palmer’s substantial links with the Liberal and  National Parties.

Meanwhile, the heavy advertising campaigns, that both sides are mounting in newspapers and television, are delighting Australia’s media barons.

They have had little else to cheer them, over recent years, as they watched their old rivers of gold drying up,  before the rapid advance of new media like the internet, which they don’t control.

New figures this week will also throw more light on Australia’s balance of payments, its retail trade, building approvals and national income.

Federal parliament is also due to debate Australia’s tax laws, superannuation reforms and the Rudd government’s relatively modest paid parental scheme proposals, this week.
Investor’s attention, though, will still be firmly on Europe’s debt problems, which were still contributing to Wall Street wobbles, late last week, New York time.