Opinion
Reserve Bank has finally taken the inflation crisis seriously
The consumer price index reading gave the RBA an out. Instead, governor Michele Bullock’s tough talk dumped cold water on a rate cut any time soon.
Steven HamiltonColumnistLast week, the RBA did not one but two things worthy of our praise and gratitude. What a pleasant surprise.
June-quarter inflation, which came in almost exactly in line with the RBA forecast, left the door wide open for the bank to squib it. Immediately upon release, markets ruled out almost any possibility of a rate rise. In fact, following the subsequent financial ructions abroad, markets fully priced in two rate cuts this year.
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