Economics
RBA Faces Hawkish Heat as Strong Demand Lifts Inflation Risk
- Government budget offered cash handouts ahead of May election
- Lowe monitoring inflation psychology, but wants higher wages
Gold scales are displayed at the Reserve Bank of Australia building in Sydney, Australia.
Photographer: David Gray/BloombergThis article is for subscribers only.
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The Reserve Bank of Australia is under pressure to begin tightening monetary policy in as little as two months as a strengthening economy together with pre-election budget spending fuels inflation concerns.