The Reserve Bank has a special term for Donald Trump
Before rejoicing with some extra money in your wallet after the Reserve Bank's latest cut in official interest rates, grab the paper (or check out your digital version) and read the world pages.
There, you'll see another photograph of Donald Trump and another story about something he's done. It might be his questionable decision to accept a $US400 million plane from Qatar, cutting essential services or blowing out the size of the budget deficit (now on track to surpass $US37 trillion within weeks).
It's news, but the Reserve Bank has another word for it - 'uncertainty drag'.
And that drag now has a number.
While the focus for most of us is on the official cash rate and what that means for our mortgage repayments, the RBA is trying to set policy as the big orange man rampages through economic orthodoxy.
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As best as it can determine, Trump and tariffs means a little slower growth here, a small bump in unemployment and inflation edging down to the middle of the bank's 2-3 per cent target band.
But that's just on what he's announced (for now). Knowing that Trump could change policy direction if his Big Mac is not cooked properly, the RBA has looked at the best and worst-case scenarios.
In the best-case scenario (or wishful thinking), Trump sees the error of his ways and brings tariffs back to where they were last year.
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