ricardian ambivalence

RBA: Double-cut … no pike

The RBA cut 25bps to 1% on 2 July, delivering a rare back-to-back easing. They didn’t, however, drop the sort of hint that would suggest another cut in August.

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Australia’s disappearing Phillips Curve

The RBA’s realisation that the NAIRU is a bit lower is a case of better late than never. The data shows that the relationship has been getting flatter at a lower level of inflation for some time.