Shadow RBA spooked by inflation pimple

Tuesday, 5 November 2019

Perhaps the least credible insitution in Australia says the RBA should hold today:

Rates Need to Stay Put After Inflation Inches Up

Australia’s inflation rate, at 1.7% in the September quarter, edged slightly closer to the Reserve Bank of Australia’s official target range of 2-3%. The unemployment rate dipped to 5.2% in September, while real wage growth remains low at 0.7%. The RBA Shadow Board’s conviction that the cash rate should remain at the new, low rate of 0.75% equals 64%, while the confidence in a required rate cut is 8% and the confidence in a required rate hike 27%.

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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.