RBA chooses recession
Bloxo elegantly captured the RBA’s recent choices as between stagflation and recession. It has chosen the latter. Yesterday, two key governors hit the hustings to warn folks that more tightening is coming. The first was the adorable Sarah Hunter, Assistant governor (Economic). I think the Board have been pretty clear. The staff as well. Certainly The post RBA chooses recession appeared first on…
The Reserve Bank of Australia (RBA) has opted for a recession over stagflation, according to recent statements from key governors. Assistant Governor Sarah Hunter emphasized that inflation remains the top priority for the Bank. Despite recent data, the risk to inflation appears to be overstated. The Bank is closely monitoring the impact of factors such as oil prices on inflation.
While one month of data should not be overemphasized, the Bank has expressed concern about inflation remaining above target for an extended period. The Board has signaled its willingness to raise interest rates if inflation exceeds expectations. The full text of this article is available to MacroBusiness subscribers.
Written by urgent.news from MacroBusiness's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
