Via Bloomie comes Dr Rainbow:
“If growth continues to pick up, then I think they’ll raise rates long before inflation returns to target,” said John Edwards, a non-resident fellow at the Lowy Institute for International Policy and former RBA board member.
“My view is influenced by what Phil Lowe’s been saying for many, many months on the perils to financial stability from very, very low interest rates. That was originally an argument for not lowering them any further. But it’s also an argument, as the economy picks up strength, for increasing them.”
