Why RBA and Treasury Inflation Forecasts are Different

Why RBA and Treasury Inflation Forecasts are Different

Westpac Group chief economist and former RBA assistant governor, Luci Ellis says while much has been made about the difference in inflation forecasts between the government and Reserve Bank, they’re not far apart. Subscribe:
She thinks the probability of an interest rate hike has declined, following the latest wages and jobs data.
But she warns the government is walking a fine line between providing support and services to a household sector under pressure and avoiding adding to that pressure by boosting inflation and possibly interest rates.
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Credit to : ABC News (Australia)