Motive #1 isn’t distinctive to the RBA, sticky excessive inflation as confirmed by the latest knowledge:
The Wall Avenue Journal has a pleasant piece up dissecting the (ugly) knowledge and on implications for the RBA. However it’s the ultimate a part of the article that hits the house run (formatting mine, for emphasis):
The following few months are prone to witness such occasions as
- a fairly large rise within the minimal wage of Australian employees
- and the supply of beneficiant earnings tax cuts midyear.
- These will coincide with a federal funds that’s prone to embrace new spending measures designed to take the ache out of rising dwelling prices.
Consequently, economists are divided over whether or not the RBA can be assured sufficient that inflation is beneath management to chop rates of interest this yr, and a few assume will probably be the final main central financial institution to loosen coverage.
The Journal is gated, however when you can entry it this is a good read.
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