If the Reserve Bank were a football coach, it would have been sacked eons ago

There are all sorts of reasons for this failure – the pandemic being just one of many – but by any stretch, having inflation in the band for just 10 per cent of the past decade is pretty poor form.

Some of its core beliefs were shredded in the pre-pandemic era as it sought to lift inflation to its target. There is now a danger more of those core beliefs could be challenged as it seeks to bring inflation down. On the trend measure, unemployment remained at 3.9 per cent where it has been since November. Despite the RBA’s tightening of monetary policy, the trend jobless rate has climbed by just 0.3 of a percentage point over the past 12 months.Yet, and this is the issue that has to be playing on the mind of the Reserve Bank, the inflation rate has fallen.Remember, inflation was at 7 per cent in March last year.

The reports coming in from charities and social care organisations show there is real pain being felt by a large proportion of the population. Insolvency numbers and the gradual, but steady, increase in the number of people falling behind on their mortgages or car loans also point to the economy struggling.The RBA’s poor inflation track record was partly due to its belief that its economic models continue to work properly.

Australia Latest News, Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

RBA interest rates: Reserve Bank of Australia could cut before the US Federal ReserveExperts say the Reserve Bank is still on track to cut rates this year but sticky US inflation might force the powerful Federal Reserve to delay until at least Christmas.
Source: FinancialReview - 🏆 2. / 90 Read more »

If the Reserve Bank were a football coach, it would have been sacked eons agoThe bank’s job is to hold inflation between 2 and 3 per cent. Since mid-2014, it has hit that mark on just four occasions.
Source: brisbanetimes - 🏆 13. / 67 Read more »

If the Reserve Bank were a football coach, it would have been sacked eons agoThe bank’s job is to hold inflation between 2 and 3 per cent. Since mid-2014, it has hit that mark on just four occasions.
Source: theage - 🏆 8. / 77 Read more »

Interest rates: Keep emergency power to override Reserve Bank, Treasurer Jim Chalmers toldThe treasurer should not scrap the extraordinary power to override the Reserve Bank, the Coalition and Greens have recommended in their reviews of the bank’s overhaul.
Source: FinancialReview - 🏆 2. / 90 Read more »

Reserve Bank Warns Borrowers of Tough ConditionsThe Reserve Bank warns borrowers of tough conditions for the rest of the year, with relief expected in 2025 through higher wages and interest rate cuts.
Source: brisbanetimes - 🏆 13. / 67 Read more »

Experts respond to Reserve Bank of Australia’s decision to keep interest rates on hold7NEWS brings you the latest local news from Australia and around the world. Stay up to date with all of the breaking sport, politics, entertainment, finance, weather and business headlines. Today's news, live updates & all the latest breaking stories from 7NEWS.
Source: 7NewsAustralia - 🏆 11. / 71 Read more »