Former RBA officials say budget offers no inflation relief
Economists say Australian spending plans will create modest fiscal expansion with some upside risk
The Australian government’s new budget will bring no major relief to the Reserve Bank of Australia as it fights increasing inflation that began before the Iran war, economists tell Central Banking.
Unlike the central banks of other developed economies, the RBA has tightened policy twice since the outbreak of the conflict in late February. The moves were in response to Australia’s rising consumer price index (CPI), which exceeded the RBA’s 2–3% target band last July before reaching 3.7% in
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