Our confidence in our policy outlook has increased following the announcement of a new Statement on the Conduct of Monetary Policy, which affirms the RBA’s commitment to inflation targeting.
The affirmation of ‘policy orthodoxy’ gives us increased confidence that the RBA will ultimately be drawn into delivering additional rate cuts in 2017, despite GDP growing at its fastest pace in four years.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
