RBA Governor Michele Bullock may be preparing Australians for a ‘bitter pill to swallow’
UNSW Economics Professor Gigi Foster explains the potential reasoning behind today’s RBA interest rate hold.
It has been a big day of economics in Australia with the RBA leaving interest rates on hold ahead of next week’s federal Budget.
“The RBA doesn’t just look at the rate of inflation, remember, it’s also just looking at other signals, whether it’s the labour market, supply chains, or consumer confidence,” Professor Foster told Sky News host Chris Kenny.
RBA Governor Michele Bullock may be preparing Australians for a ‘bitter pill to swallow’
“Those signals, a lot of them have been quite strong, don’t forget as well, that just around the corner is the modified stage three tax cuts.
“That’s going to inject a bit more money into people’s pockets.
“I think Michele Bullock is hedging her bets and preparing the markets for a potential another bitter pill to swallow, you might say, particularly for mortgage holders.”