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Vital Signs: In the battle over interest rates, it'd be unwise to bet against the RBA

By Richard Holden, Professor of Economics, UNSW

After years of repeatedly missing its inflation target through too timid monetary policy, in the past week the Reserve Bank has decided to get tough.

Not only did it hold its closely watched cash rate target steady at 0.10% at Tuesday’s board meeting, it ramped up its efforts to defend its separate 0.10% target for the three-year government bond rate in the face…

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