Michele Bullock has provided a cogent argument for raising interest rates, but she has been careful not to offend Treasurer Jim Chalmers by explaining why inflation has been so strong.
Treasurer Jim Chalmers’ clumsy attempt to influence monetary policy backfired spectacularly because it left Reserve Bank governor Michele Bullock little choice but to raise interest rates in a defiant display of independence.
Had Chalmers been more subtle in expressing his opinion, it would have been a lot easier for Bullock to keep interest rates unchanged for another month or so.
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Jill Margo was a senior writer at The Australian Financial Review.
