From the AFR:
Monetary policy needs easing to spur weaker than expected economic growth that has pushed core inflation to the bottom of the central bank’s target range, according to a group of economists acting as a “shadow” Reserve Bank of Australia.
The nine-member board was set up by the Australian National University’s Centre for Applied Macroeconomic Analysis in August 2011.
The group includes two former RBA board members, ANU professors Bob Gregory and Warwick McKibbin, as well as Bank of America-Merrill Lynch Australia chief economist Saul Eslake and HSBC’s Paul Bloxham. The shadow RBA said the central bank had “some scope’’ to lower borrowing costs. Six members of the group said their most preferred outcome was a cut in the benchmark lending rate by 0.25 of a percentage point to 4 per cent.
…Separately, former Reserve Bank governor Bernie Fraser told the ABC’s 7.30 Report last night there should be a cut of 50 basis points.
