OPINION: Anthony Albanese’s reckless warning for the RBA not to ‘overreach’ work against governor Philip Lowe’s efforts to keep a lid on inflation expectations and maintain credibility in the central bank.
and maintain credibility in the central bank which is already under pressure.
The RBA is already likely to raise the official cash rate at four consecutive monthly meetings by 0.5 of a percentage point each time to take the cash rate to 2.35 per cent by September.”They need to make sure that they get the assessment right.“ A pattern is developing in Albanese’s propensity for veering off script when talking about economic matters.
Albanese was asked about the prospect of the aggressive interest rates rises on Nine’s 3AW Radio in Melbourne on Wednesday.“The Reserve Bank sets these rates independently of government.“That would place real pressure on people.“Of course, the Reserve Bank will make its decisions based upon their assessment of where the economy is at.
After initially erring by warning about inheriting “skyrocketing” inflation, which risked unanchoring inflation expectations, Chalmers has toned it down.
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