We are getting inflation data today (around 11.30 as with all ABS releases) and that has economists thinking about the next RBA meeting where another interest rate cut is predicted. (Depending on how much of a wave Trump’s chaos creates, the market is predicting up to five interest rate cuts over current months, as central banks look to starve off recession threats from the blow back)

Taylor doesn’t want to talk about the RBA CUTTING interest rates. And he also doesn’t want to talk about inflation being in the target band of 2-3% (which is the rate of acceptable inflation, according to the RBA)

Taylor:

I don’t get into commentary on the RBA, unlike some of my opponents. What I will say is that it’s a widespread view that inflation is going to go back up. The IMF, for instance, is predicting it will go up to 3%, well outside the target range, over the next little while. We have to be ready for the prospect of rising inflation, not falling.

If we look at history, very often a surge of inflation, if it fades away, you see another surge not long afterwards. We have to be on alert for this. We’re deeply concerned that we’re going into an era where not only will we see sluggish economic growth but we could see a resurgence of inflation, and that’s why boosting growth and investment and cutting red tape is so essential to making sure we finally beat inflation and get the growth we need after 21 consecutive months of GDP per capita going backwards.