RBA’s Lowe admits inflation models need rethink

Philip Lowe
Philip Lowe
Photo: Crawford Forum/Flickr

Australian central bank governor Philip Lowe admitted to mistakes in inflation forecasting today (September 8), but dismissed calls to resign.

A year ago, the Reserve Bank of Australia forecast inflation would be around 1.75% in 2022. Forecasts now put inflation at 7.75%. “This is a very big change and a very large forecast miss,” Lowe acknowledged during remarks at a charity fundraising event.

While he noted other central banks had made similar mistakes, he said the errors had led to “soul

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