The RBA is refusing to act like inflation is a problem
Apparently the Reserve Bank thinks raising rates would trigger a technical recession, and they’re terrified of doing so. So don’t expect our inflation-driven cost-of-living crisis to come under control any time soon.
There was nothing surprising about the Reserve Bank’s decision to keep official rates at 4.35 per cent today. The interesting news came from the wording of the accompanying statement, and, more importantly, from governor Michele Bullock’s press conference.
It’s becoming increasingly clear that while Bullock speaks semi-hawkishly about inflation, she and her board act dovishly.
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Richard Holden is Scientia Professor of Economics at UNSW Business School. Connect with Richard on Twitter.
