Part 4/9:
Dono emphasizes that the country's economic deceleration is a direct result of the Reserve Bank of Australia's (RBA) tightening monetary policies. This strategic tightening aims to curb inflation but also dampens economic activity and employment growth. The cautious approach of the RBA reflects the balancing act policymakers face: they want to control inflation without causing a severe recession.
The Role of the Reserve Bank of Australia
The RBA's recent decision not to cut interest rates amid signs of a weakening labor market has fueled debate among economists. Some expected a rate cut, especially after the unemployment figures and the slowdown in job creation, but the RBA opted to hold rates steady at its last meeting.