RBA must make it clear that inflation means higher interest rates
The governor needs to say it as it is: in the absence of a significant shift in the trajectory of the economy, we will probably need to raise the cash rate.
We will learn a great deal about Australia’s new monetary policy board this week.
After all the hoopla generated by last week’s high inflation numbers, the Reserve Bank of Australia must make it clear to the Australian community what this could mean for interest rates.
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Warren Hogan is managing director of EQ Economics.