James Morley

The clearer commitment by the RBA to maintain low interest rates until inflation is sustainably within the target range and noting that this timeframe is expected to be at least 3 years is a welcome development. Further communications to reinforce this commitment and to ensure various measures of inflation expectations also return to the 2-3 per cent target range should also be undertaken at every opportunity. In particular, “sustainably” should be clarified to mean that some measures of inflation expectations need to return to the top half of the target range prior to giving any shorter signal about when the policy rate might be raised, such as will eventually be done when removing or modifying the yield-curve control target on 3-year government bonds.

Outcome date: 
Tuesday 01 December 2020
Current rate: 
12 months: 
6 months: 
Surname: 
Morley
3 Years: 

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