Central Banks
RBA’s Inflation Battle Needs More Fiscal Support, Committee Says
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The Reserve Bank of Australia in Sydney.
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
Australia’s government needs to do more to manage price pressures in the economy and not leave the “heavy lifting” solely to the Reserve Bank, a leading think thank said in a report.
“The RBA has a blunt lever in interest rates, but the government has more options,” said Cassandra Winzar, chief economist at the Committee for Economic Development of Australia. “The federal government and the RBA must be on the same page to ensure a soft landing.”