Central Banks
Ex-RBA Chief Criticizes Lowe for Misjudgement of Expectations
- Bernie Fraser says communications should be cautious, prudent
- RBA last week surprised with forecast of more rate hikes ahead
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Australia’s central bank is overly prescriptive in its interest rate communications and would benefit from being more circumspect, according to former Reserve Bank Governor Bernie Fraser.
The RBA hiked last week by a quarter-percentage point, as expected, but Governor Philip Lowe surprised investors when he added “further increases in interest rates will be needed over the months ahead” to contain inflation.