Governor Phil Lowe cannot decry the evils of inflation while being prepared to engineer above-target levels of it for years. He needs to explain.
A little-noticed moment in RBA governor Philip Lowe’s remarks at the National Press Club last week should lead every observer of the central bank to rethink its response functions.
The governor’s statement provided little clear justification for a pause – beyond “we’ve already done a lot, let’s pray it’s enough”.later. The governor does not hold press conferences following decisions. His speech might provide rare context. All this time, commentators have been noting ad nauseam that one need not impose subjective standards on the RBA’s decisions to criticise it because, according to its very own target and forecasts, it has raised the white flag on inflation.The relative inaction of our central bank leads us to import the inflation of our more active peers.
All other things equal, that gap depresses the Australian dollar, lowering our purchasing power and raising the price of our imports. The relative inaction of our central bank leads us to import the inflation of our more active peers.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
RBA governor outlines strategy to bring Australian economy to soft landingAfter becoming the first major central bank to pause after a string of interest rate rises RBA Governor Philip Lowe outlined his strategy to try and glide Australia’s economy to a soft landing.
Read more »
Reserve Bank Governor Philip Lowe’s savings investment tip | 7NEWSIt can be hard to know if you're getting a good deal on a banking product, but last week Reserve Bank Governor Philip Lowe gave Australian savers a helping hand by pointing out they shouldn't accept a savings rate of less than 4.5 per cent. 7NEWS
Read more »
New BoJ governor must end Japan’s easy money addictionKazuo Ueda faces the tough task of shifting gears to normalise monetary policy without hurting the economy too much, writes Masahiko Takeda.
Read more »
Jon Rahm roars back to win Masters and deny LIV Golf major victoryJon Rahm survived a marathon day to score an emotional Masters win at Augusta National with Brooks Koepka and Phil Mickelson in second
Read more »
US army sergeant found guilty of murdering BLM protester in AustinTexas governor moves to pardon Daniel Perry, who was convicted of shooting Garrett Foster during rally in 2020
Read more »
RBA governor outlines strategy to bring Australian economy to soft landingAfter becoming the first major central bank to pause after a string of interest rate rises RBA Governor Philip Lowe outlined his strategy to try and glide Australia’s economy to a soft landing.
Read more »