InvestSMART’s Evan Lucas says the Reserve Bank of Australia could follow the path of New Zealand’s central bank in more aggressively raising rates.
“They are on a path that is much, much harder and much, much stricter than we are, and there is lessons to be taken here,” Mr Lucas told Englishheadline Australia.
“The RBA could go down this path I mean they are currently suggesting they are are not.
“But what New Zealand is pointing out very clearly is that the inflation problem is so part and parcel with their economy and so part and parcel with their overall population that they have to do something to get it back to their target range which is one to three per cent.
“Our range is two to three per cent, so it’s a long way away from that.”