The Reserve Bank is taking its dual mandate seriously and seems to be ignoring the incessant clamouring for another rise in the cash rate.
At Tuesday’s meeting, the Reserve Bank board should ignore incessant demands for cash rate increases that would plunge the economy into recession. One Recessionista has gone so far as to accuse RBA governor Michele Bullock of being beholden to the Albanese government, as evidenced by her refusal to lift the cash rate further.
The call for a cash rate increase has persisted into this week. Plenty of other economists have demanded that the RBA jack up the cash rate again forthwith. In fact, the RBA is bound by law – the Reserve Bank Act of 1959 – to contribute to the achievement of full employment.Australia’s economy grew at a meagre annual rate of 1.1 per cent in the March quarter, more recent retail sales have been weak and almost all the recent job creation has been funded by governments.
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