Recessionberg retains RBA inflation target

Of course he did. His only fiscal goal is force the RBA to cut as low as humanly possible, via the AFR:

While the statement has been modified six times since 1996, with changes typically coinciding with either a change of government or the appointment of a new RBA governor, the triple mandate has remained. So too the inflation target, which is set at between 2 and 3 per cent “on average, over time”.

While recent years have seen inflation below the band, I have concluded after careful consideration as well as consultation between Treasury and the RBA that the existing statement is consistent with the government’s and the RBA’s shared understanding of the monetary policy framework.

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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.