Could Donald Trump’s tariffs trigger an Australian rate cut?
Donald Trump’s tariffs will have a barely perceptible impact on inflation in Australia as long as we don’t retaliate, but our economic activity would suffer and that would be disinflationary.
Last week financial markets provided a glimpse of the economic dystopia that a global trade war might elicit.
For a Reserve Bank of Australia that has described its task as akin to traversing a “narrow path” the arrival of a global storm in the form of a trade war makes that task inordinately more complex.
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Stephen Miller is an investment strategy advisor to GSFM and formerly a Treasury officer who served on the personal staff of the then-treasurer Paul Keating from 1985 to 1987.
