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RBA says interest rate rise in 2022 unlikely despite inflation uncertainty
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Australia remains well-placed to weather a “perfect storm” of inflationary pressures triggered by the Covid pandemic without resorting to an early raising of the cash rate, although how the labour market responds remains uncertain, the reserve bank governor has told a meeting of economists.
Philip Lowe on Tuesday maintained his view that a recent jump in consumer prices did “not warrant an increase in the cash rate in 2022” as markets have been betting.
“The economy and inflation would have to
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