Taming inflation now looks like a first-term problem for Labor. The second-term challenge facing the government is the lack of a substantial growth agenda.
Tuesday’s decision by the Reserve Bank’s monetary policy board to reduce the cash rate by 25 basis points to 3.85 per cent was fully priced in by the money markets.
The near certainty was based on the 2.9 per cent March quarter underlying inflation reading, which showed trimmed mean annual inflation falling into the top of the central bank’s 2 to 3 per cent target band for the first time since December 2021.
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