business
The RBA has done its bit on inflation. Now it’s Jim’s turn
RBA has done its bit on inflation, raising the cash rate to 4.85 per cent on Tuesday.
Key points
- The Reserve Bank raised the cash rate to 4.85 per cent on Tuesday.
- The trimmed mean measure of inflation rose recently to 3.7 per cent.
- Headline inflation rose to 4.3 per cent, which the article calls instructive.
Why it matters. The article says the prospect of inflation rising further is particularly concerning, which is why the rate rise was needed.
The Reserve Bank raised its cash rate to 4.85 per cent on Tuesday, doing what it was expected to do. The trimmed mean measure of inflation rose recently to 3.7 per cent, which the article says is already far too high. The uptick in headline inflation to 4.3 per cent is instructive, and the article says the prospect of further rises is particularly concerning.
Latest updates
The RBA has done its bit on inflation. Now it’s Jim’s turn
The RBA’s renewed sense of urgency is important and well-founded. It has finally started to walk the walk, not just talk the talk. In raising the cash rate to 4.85 per cent on Tuesday, the Reserve Bank did what it was expected to do . It was also what it needed to do. Although the trimmed mean measure of inflation rose recently to 3.7 per cent – which is already far too high – it’s the prospect of it rising further that is particularly concerning. And here the uptick in headline inflation to 4.3 per cent is instructive. Subscribe to gift this article Gift articles to anyone you choose each month when you subscribe. Fetching latest articles.