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RBA Won’t Wait for CPI to Be Inside Target Before Cutting Rates
Australia’s central bank won’t wait for inflation to return to the midpoint of its 2-3% target before cutting interest rates, Governor Michele Bullock told a parliamentary panel on Friday, suggesting the board is open to beginning an easing cycle later this year. “There’s a question that comes about when do we reduce the restrictiveness of monetary policy to neutral, and do we have to be in the band at 2.5% before we think about doing that? No, I don’t believe we do,” Bullock told lawmakers on Friday in response to a question. “But we need to be very confident that we’re going to get there as we start ... (full story)