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Why the RBA shouldn't obsess over inflation when it sets interest rates

  • Written by The Conversation
Why the RBA shouldn't obsess over inflation when it sets interest ratesShutterstock

Later today, everyone expects the Reserve Bank board will push up its cash interest rate for the second consecutive month.

Why? According to the board’s official minutes, it’s:

to ensure that inflation in Australia returns to the target over time

Some increase in interest rates is justified simply because with higher...

Read more: Why the RBA shouldn't obsess over inflation when it sets interest rates

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