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Rebound in growth could force RBA’s hand on rates

Rebound in growth could force RBA’s hand on rates

Australia is doing better than its peers in managing the pandemic-affected economy and this may increase the pressure on RBA to reconsider its monetary stance.

The Reserve Bank may have to reconsider its decision to keep interest rates flat. 

Saul EslakeContributor

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One could question whether Australia is leading the pack in recovering from the “corona-recession”.

Of the now 83 countries that have reported GDP figures for the final quarter of last year, there are 11 in which fourth-quarter real GDP was higher than the pre-pandemic level, and Australia was not one of them.

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Saul Eslake
Saul EslakeContributorSaul Eslake is former chief economist of ANZ Bank and of Bank of America Merrill Lynch in Australia, and is now principal of Corinna Economic Advisory based in Hobart.

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Original URL: https://www.afr.com/policy/economy/rebound-in-growth-could-force-rba-s-hand-on-rates-20210406-p57grn