Incoming Reserve Bank Governor Michele Bullock will be"feeling around in the dark" as she attempts to find the right level for interest rates in the coming months says independent economist Warren Hogan, with Australia's economy remaining in a delicate position.
Ms Bullock joined the RBA in 1985 and although she had only been Deputy Governor for a year prior to her promotion, has amassed a wealth of experience across her more than three decade stay. "She knows all of the ins and outs of the issues and I think this is our best chance of navigating the next 12 months without a. undercooking the rate hikes and letting the economy get away or b. overcooking the rate hikes and causing unnecessary disruption."
"The one thing that's become apparent to me is either we've got one or two left, which is my long-standing view and where the market has come to in the last few months, or we're going to have to go up to the level of where the US and other central banks are, i.e. five and a half per cent," he said."I think that scenario is in play, we've just got to watch and see how the economy pans out in the next few months.
Despite heavy criticism from the opposition over his approach, Treasurer Jim Chalmers has repeatedly stood by the way his party has navigated the inflation challenge.
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Source: 7NewsSydney - 🏆 16. / 63 Read more »