The Treasurer is currently reviewing the RBA’s inflation target before he signs the Statement on the Conduct of Monetary Policy. We doubt there will be any major changes and Governor Lowe gave a speech this week outlining why the current target is appropriate. But given the bleak economic outlook we think inflation will remain below target for some time, which is why we expect the RBA to cut rates to 0.5% by early next year.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.