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From The Shadow:
Strong Conviction that Rates Need to Stay Put: Shadow Board
Australia’s inflation rate, at 1.6% (June quarter), 0.3 percentage points higher than in the March quarter, remains well below the Reserve Bank of Australia’s official target range of 2-3%. The unemployment rate is firm at 5.2%. The RBA Shadow Board’s conviction that the cash rate should remain at the new, low rate of 1% equals 68%, while the confidence in a required rate hike equals 22% and in a required rate cut equals 11%.
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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.