The March CPI was released yesterday.
Here are a few reaction:
I reject Jericho's argument and am fully in agreement with both Huangfu and Mark the Graph.
Why you ask?
I am old enough to remember the oil shocks of the 1970s and 80s. ( so is John Quiggin). I reemember the second and third round effects that embedded inflation that took years ( a decade?) to reduce and then it took a nasty recession.
I favour rates rising to 4.5%.
Jericho's wait until you know you have a problem is the opposite to a stitch in time saves nine.
ReplyDeleteand by the time you act is is too late and the credibility of the RBA is shot
ReplyDelete