Opinion
There is no way the Reserve Bank can cut interest rates next week
The central bank would be well advised not to misjudge the politics. An easing of monetary policy would put more jobs and more inflation into the economy. Is that what people really want?
Warren HoganEconomistI wrote in these pages in March 2021 that forward guidance from the Reserve Bank of Australia was a bad idea. It is worth a look, although those issues have long passed.
As we observe the financial markets price in a rate cut with near certainty, I can say with similar conviction that an easing of monetary policy at the next RBA board meeting is an equally bad idea.
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