Australian Economy Australian interest rates

Is the Lunatic RBA about to dump the inflation target?

Thursday, 25 July 2019

Gone! Cornered by the aftermath of a great global recession, the 23-year fad of inflation targeting looks to be well and truly done in Australia.

The Australian‘s and the Financial Review‘s previews this morning are in unison on the essence of the reform to be unveiled in a few hours, with RBA governor Phillip Lowe scheduled to speak in Sydney at a charity fundraiser on Inflation Targeting and Economic Welfare.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.