Why Michele Bullock’s next rate call will be one of the toughest
The RBA governor faces one of the hardest calls any central banker has ever had to make. The chances of getting it wrong are higher than ever, and so are the costs.
To paraphrase Winston Churchill, the Reserve Bank had been given a choice between war and dishonour; it chose dishonour and may yet get war.
The hour is not as dark or desperate as the eve of World War II. But as far as central bank predicaments go, Michele Bullock faces one of the toughest choices any Reserve Bank governor has confronted.
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Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com
