Statement by the Reserve Bank of Australia released on Tuesday:
As is the case in most countries, inflation in Australia is too high. Global factors explain much of this high inflation, but strong domestic demand relative to the ability of the economy to meet that demand is also playing a role. Wages growth is continuing to pick up from the low rates of recent years, although it remains lower than in other advanced economies where inflation is higher. Given the tight labour market and the upstream price pressures, the Board will continue to pay close attention to both the evolution of labour costs and the price-setting behaviour of firms in the period ahead.
Run the chart back a bit further. Context helps
Should have been zero; still an irresponsible decision
Getting back to “normal”
Yet again the RBA disappoints. This is not the time to pause. Unless you reach a figure of 3.5 before xmas you can’t tame the inflation that is going to be 7.5 + very soon.
the market would have reacted far more positively if they raised it by 40 basis points to 2.75 per cent… a perfect compromise between 0.25 & 0.50 and it gets us back to a nice quarter number!
BULLISH!
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