The central bank should not ignore the fact that the actual inflation rate Australian consumers and businesses feel is now within the designated target range of 2-3 per cent.
As Reserve Bank board members return from their holiday break, they will confront a momentous decision – whether to reduce the cash rate for the first time in more than four years – at their February meeting.
Despite the private sector recording zero growth in the September quarter last year, the board decided against reducing the cash rate at its December meeting.
Source: https://www.afr.com/policy/economy/rba-should-cut-rates-and-not-be-fooled-by-trimmed-mean-inflation-20250107-p5l2h2