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Jonathan Kearns

Reserve Bank’s path to a soft landing is very narrow indeed

Further rate rises would make it harder for the RBA to achieve the trifecta of a small rise in spare labour, with employment still increasing and inflation back at target.

Jonathan KearnsEconomist

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Financial market pricing suggests it’s a coin toss whether the Reserve Bank of Australia will lift rates in the next few months.

This is a sharp turnaround from earlier expectations of rate cuts; homeowners’ hopes were cruelled by higher-than-expected inflation. With inflation persistent, and the prospect of further rate rises, is the central bank stumbling off its narrow path into the inflationary or recessionary abyss below?

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Jonathan Kearns is chief economist at Challenger. He previously held senior roles at the Reserve Bank of Australia including head of financial stability and head of the economic analysis and economic research department.

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    Original URL: https://www.afr.com/link/follow-20180101-p5js94