Sock puppet: RBA not going to cut

Thursday 30 January 2020

So says the McCrann RBA sock puppet:

The Reserve Bank has finally got what it wished for – inflation is back in the (2-3 per cent) zone.

Very critically, this takes inflation off the policy table as a reason for the RBA to cut rates again. A big part of the reason it cut last year was to try to “force-feed” inflation higher and into the zone.

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About the author

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.