Early Edition with Kate Hawkesby

If growth is the game we're in then the Reserve Bank should keep cutting interest rates.  The problem is growth is not the game they're in. They're in the business of taming inflation, and that's about it.  The Government ditched the dual mandate —introduced by the last lot— that saw Adrian and Co. also focus on keeping people in jobs. Maximum sustainable employment.  That's now gone and inflation's in the band.  So the bank is going to take things slow. Ease the next few cuts over a longer period of time out of fear they'll overcook it again. They'll be thinking about Trump's tariffs and the fear of price hikes, even though these haven't materialised —even in the data out of the States— as yet. They'll be worried about the Middle East and the price of oil.  It's an imported cost and it's in everything, not just our cars, but transport of goods, production, you name it.  It directly and indirectly contributes up to 30% of our inflation when the price is high – like when somebody'