The RBA is betting against the world on interest rates
The prospect of “higher for longer” interest rates is hitting financial markets and raising questions about whether the Reserve Bank’s less aggressive interest rates than overseas can last.
The last mile of the inflation fight will be the toughest test for new Reserve Bank of Australia governor Michele Bullock.
The initial easy part of the interest rate hiking cycle has passed and a more tricky calibration to reduce inflation without crushing the economy too hard is now in front of her and the RBA board.
John KehoeEconomics editorJohn Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
