Nomura’s Martin Whetton is in the Australian Financial Review this morning pointing out the downsides of the lower Australian dollar for Australian consumers:

You’re going to start to see petrol prices go up in Australia and that is a direct impact on household spending

Interestingly, this is pretty much the same thing that Japan’s economy minister Amari noted on the weekend when he said “If the yen keeps on weakening a lot more, it will have a negative impact on peoples’ lives” – i.e. pushing up the price of imported goods. When will the RBA have its ‘Amari moment’? (I would think its quite a way in the distance).

In addition, Whetton notes, referring to the series of interest cuts in late 2012:

“Typically we would have seen building construction pick up,” Mr Whetton said. “We’re not seeing credit growth jumping.”

Flipside to weak $A could bite (gated)