Part 7/9:
He argues that the current growth rate below trend is, in part, a deliberate consequence of policy aimed at addressing inflation. As inflation concerns fade and the economy transitions toward more sustainable growth, the risk is that additional rate cuts and policy adjustments are required to restore momentum.
Looking Ahead: The Path to Recovery
Dono is optimistic that inflation is largely under control and sees a future where the RBA’s focus shifts toward returning the economy to its trend growth rate of around 3%. Achieving this goal will involve careful monetary easing and targeted measures to bolster private investment.