>”The governor said … that the likelihood, at least in the near term, of further rate cuts was probably very low,” Mr Hauser said on Thursday.
>”That’s still true, I think, if I’m honest with you.
They need to keep inflation in that 2 to 3% target band so they need to wait for inflation to retreat. They also need to have an extended period of on-target inflation to anchor the publics inflation expectations.
When you look at commodities and manufactured goods inflation (i.e. things we import) inflation has been tepid helped by low oils prices and China exporting deflation. Most of the issues Australia has had have been domestic (housing, electricity etc.) which should be within governments purview to solve.
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>”The governor said … that the likelihood, at least in the near term, of further rate cuts was probably very low,” Mr Hauser said on Thursday.
>”That’s still true, I think, if I’m honest with you.
They need to keep inflation in that 2 to 3% target band so they need to wait for inflation to retreat. They also need to have an extended period of on-target inflation to anchor the publics inflation expectations.
When you look at commodities and manufactured goods inflation (i.e. things we import) inflation has been tepid helped by low oils prices and China exporting deflation. Most of the issues Australia has had have been domestic (housing, electricity etc.) which should be within governments purview to solve.