Bond yields kick despite slow-moving inflation index

30 September 2019

 

The RBA’s stated objective is to achieve an inflation rate of between 2% and 3%, “on average, over time.” Since the GFC, Australia’s inflation rate has been trending lower and lower and it has been below the RBA’s target band for some years now. Despite the RBA’s desire for a higher inflation rate, its attempts to accelerate inflation through record-low interest rates have failed so far. The latest unofficial measurement...

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