It is “probably better” for the RBA to go a “little bit too hard” rather than “too soft” on interest rates to reduce the risk of falling “back down the inflation rabbit hole”, says The Motley Fool Chief Investment Officer Scott Phillips.
His comments come as the Australian Bureau of Statistics is set to realise its March quarterly inflation figures on Wednesday.
“No one believes inflation will return to between two and three per cent any time soon, certainly not this year – probably not even next year,” said Phillips in an interview with Sky News Australia. “The question is whether enough is being done on prices for the RBA to feel like it can simply step back and say, yep, the trend is okay, we can be comfortable.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why the RBA reviewers changed their minds on board splitTwo of the three eminent panellists in the review favoured maintaining a single RBA board before they looked at the detail of how the current board operated.
Read more »
Biscuits, muffins and banana bread: seven ‘little lunch’ recipes to sweeten the back-to-school bluesFrom oat cookies to savoury muffins, here are some tried and tested ideas to roll out over the term
Read more »
Defence Strategic Review a ‘step in the right direction’ but ‘not a complete solution’Australian Strategic Policy Institute Senior Analyst Malcolm Davis says the new Defence Strategic Review is a “step in the right direction” but will probably need to be updated as the “threat environment changes.” “I think it’s a step in the right direction but it’s not a complete solution,” Mr Davis told Sky News Australia. “We’re probably going to need to update this in coming years as the threat environment changes and this is heading us in the right direction now in terms of focused force rather than balanced force. “Which means we’re responding better to the sort of challenges, China in particular, is sending us but we do need to probably go further, particularly in terms of impactful projection.”
Read more »
Bond investors nervous ahead of a key inflation reportEconomists expect inflation to have peaked late in 2022, but a surprise hot CPI figure could force the RBA to lift rates once again next week.
Read more »
Why our inflation problem isn’t going away quicklyOPINION: Wednesday’s inflation data could decide if the RBA keeps interest rates on hold next week. But central bankers and investors should look beyond one quarter’s numbers.
Read more »