The AFR View
Moment of truth on inflation for Reserve Bank’s credibility
At stake here is whether the supposedly politically independent central bank can re-establish the low inflation foundations that supported three decades of unbroken economic growth until the interruption of the pandemic.
The Reserve Bank of Australia’s two-day board meeting beginning on Monday faces a moment of truth about the nation’s stubborn inflation problem and its own credibility.
After its 2020-21 forward guidance failed to pick the post-pandemic surge in consumer prices, it now confronts the genuine risk that its policy setting is not tight enough to grind inflation comfortably into its 2 per cent to 3 per cent target within the next two years.
Subscribe to gift this article
Gift 5 articles to anyone you choose each month when you subscribe.
Subscribe nowAlready a subscriber?
Introducing your Newsfeed
Follow the topics, people and companies that matter to you.
Find out moreRead More
Latest In Economy
Fetching latest articles