Economist

Richard Iley

Macroeconomics

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<p><strong>Reserve Bank of Australia's (RBA) decision to leave its policy rate unchanged at 1.5% yesterday was no surprise. The accompanying statement's much more dovish language on the inflation outlook including what appears a thinly-veiled reference to Amazon's expected disinflationary impact was however. </strong></p>
<p><strong>The RBA's last few statements had simply acknowledged that inflation was 'low' i.e. below the RBA's 2-3% target band but was expected to 'pick up gradually as the economy strengthens'. By contrast, </strong>…</p>
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Reserve Bank of Australia's (RBA) decision to leave its policy rate unchanged at 1.5% yesterday was no surprise. The accompanying statement's much more dovish language on the inflation outlook including what appears a thinly-veiled reference to Amazon's expected disinflationary impact was however. 
The RBA's last few statements had simply acknowledged that inflation was 'low' i.e. below the RBA's 2-3% target band but was expected to 'pick up gradually as the economy strengthens'. By contrast, …


Chart of the Day: RBA Says 'G'day' To Amazon