If the RBA board believes that the cash rate is likely to rise further over the next six months, the imperative should be to get it done before the new governor chairs her first meeting in October.
It would be highly desirable for the new governor to be able to keep rates on hold for her first three meetings, which would take her right through summer to February 2024. There is no substitute for a good start, and in monetary policy terms that means not having to hike interest rates.
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Warren Hogan is managing director of EQ Economics.
