Opinion

RBA must ignore the band of economists pushing a rate rise

The Reserve Bank should not be firing up its interest rate models on the strength of inflation that is now steadily dropping into target range.

Craig EmersonFormer Labor minister and economist

Apr 29, 2024 – 12.48pm

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Following last week’s release of the inflation numbers for the March quarter, most economists are forecasting that the Reserve Bank won’t start cutting interest rates before the end of 2024, with some urging further cash rate increases.

If this collective view were to sway the RBA, thousands of Australian jobs and small businesses would be destroyed for no good reason.

Craig Emerson is managing director of Emerson Economics. He is a distinguished fellow at the ANU, director of the Australian APEC Study Centre at RMIT and adjunct professor at Victoria University’s College of Business.