All the data suggests that if the Reserve Bank of Australia is doing its job, it should lift interest rates in September. The inflation situation in Australia is dire, to say the least.We have long argued that our Taylor-rule modelling of the RBA’s optimal policy path puts the appropriate cash rate somewhere between 4.75 per cent and 5 per cent. The cash rate sits at 4.35 per cent today.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
The Reserve Bank must lift rates in September, despite housing slump
The RBA has fallen behind the inflation curve and is running out of room to hide. But another two rate rises risks the biggest house price correction in history.
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