NewsBite

Opinion

Cherelle Murphy

Real interest rates must rise to finish the job

The Reserve Bank will have to go much harder to rein in inflation.

The Reserve Bank of Australia’s nine-month campaign to rein in inflation is only just touching the sides.

The cash rate is 3.35 per cent, but the real – inflation adjusted – cash rate is negative, by our estimates about minus 3.2 per cent, because inflation is way higher than the RBA’s policy rate.

Loading...
Cherelle Murphy is regional chief economist, Oceania at EY

Read More

Latest In Economy

Fetching latest articles

Most Viewed In Policy

    Original URL: https://www.afr.com/policy/economy/real-interest-rates-must-rise-to-finish-the-job-20230209-p5cj5n