More from Lowe:
- govt review is an entirely appropriate thing to do
- flexible inflation target is widely accepted as right framework
- household spending is still pretty strong, even if they are cautious
- labour market is an incredibly positive story, past point of full employment
- going to have to increase rates with inflation heading to 6% or 7%
- assume at some point rates will eventually get to 2.5% neutral level
- steady rate increases now needed to restrain inflation
I bolded the pertinent remarks.
I guess even more pertinent is that given the CPI is going to 6 to 7 why is the cash rate at 1.35% at present? Why is the RBA fiddling about?
Where we are at:
