Dimitri Burshtein & Peter Swan: If RBA slashes rates this month, it will be giving in to political pressure

The case for an RBA interest rate cut is weak, as inflation remains within target, and a rate cut would further distort economic allocation and penalize savers while rewarding inefficiency. Calls for easing are driven by flawed economic models and political convenience, risking further currency depreciation and undermining the RBA’s commitment to price stability.

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