Sky News Business Editor Ross Greenwood says the key idea in the Reserve Bank’s statement today was to “fight against inflation”, following the decision to raise the cash rate by another 25 basis points.
“The key line that I’ve sort of picked out of this statement today is this one, ‘returning inflation to target requires a more sustainable balance between demand and supply’.
“Effectively what the Reserve Bank there is saying, is even though there have been shocks to the economy with oil prices and other commodities, the reality is that Australia’s demand is running hot at the moment.”