Reserve Bank Governor Michele Bullock might need her flak jacket when she fronts the media next Tuesday after the bank’s two-day board meeting.
This week’s United States Federal Reserve interest rate cut of a hefty half a percentage point (defying most more modest predictions) will put a lot of public pressure on the RBA, which is expected to hold Australia’s official rate at 4.35%.
Bullock (who must surely abandon musings about a rate hike) can argue Australia’s situation is different – that inflation remains too high and unless that’s dealt with, we’ll all end up worse off.
