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.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services