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Yes, what you think about inflation can influence what the RBA does next

By Stella Huangfu, Associate Professor, School of Economics, University of Sydney

After two back-to-back interest rate hikes by the Reserve Bank of Australia (RBA) in February and March, all eyes are on the next policy meeting set for May.

While much attention tends to focus on current inflation, the central bank’s latest decision on Tuesday highlights another concern: what people think inflation will be in the future.

In its statement,…

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