James Morley

Headline inflation has returned into the 2-3% target range at 2.1% in the last quarter, while underlying inflation is very close to the target range. The unemployment rate remains at 5.4% and seems likely to fall if the participation rate does not keep increasing to offset net job growth.

As argued in the previous round, these solid domestic conditions and a rise in global interest rates that will keep downward pressure on the exchange rate mean that the RBA should return its policy rate to a more neutral level over the next two years or sooner if there are significant changes in inflation or global interest rates.

Outcome date: 
Monday 06 August 2018
Current rate: 
12 months: 
6 months: 

Updated:  26 October 2021/Responsible Officer:  Crawford Engagement/Page Contact:  CAMA admin