The likelihood of the RBA raising interest rates has fallen. Have we finally come to our senses? | Greg Jericho
Guardian AU Business
β’Wed, 29 Jul 2026 15:00:37 GMT
π° What Happened
Economics columnist Greg Jericho argues the 3.8% inflation rate has ended any real prospect of a July rate hike, suggesting Australia's economy is cooling naturally. He criticizes the media's focus on inflation while ignoring rising underemployment.
π The Backstory
The RBA has been navigating a delicate balance between controlling inflation and avoiding a recession. Australia's economy has shown mixed signals, with inflation still above target but the labour market showing signs of softening. Economists have been divided on whether further rate hikes are needed.
π― Why It Matters
The column offers a critical perspective on how economic data is interpreted and the human cost of inflation-focused policymaking. It raises important questions about whether central banks are too focused on inflation at the expense of employment and living standards.
Economics columnist Greg Jericho argues the 3.8% inflation rate has ended any real prospect of a July rate hike, suggesting Australia's economy is cooling naturally. He criticizes the media's focus on inflation while ignoring rising underemployment.
The RBA has been navigating a delicate balance between controlling inflation and avoiding a recession. Australia's economy has shown mixed signals, with inflation still above target but the labour market showing signs of softening. Economists have been divided on whether further rate hikes are needed.
The column offers a critical perspective on how economic data is interpreted and the human cost of inflation-focused policymaking. It raises important questions about whether central banks are too focused on inflation at the expense of employment and living standards.