Opinion
Real interest rates must rise to finish the job
The Reserve Bank will have to go much harder to rein in inflation.
Cherelle MurphyEconomistThe 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.
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Cherelle Murphy is EY Regional Chief Economist, Oceania
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