RBA’s Lowe admits inflation models need rethink
Governor acknowledges forecasting mistakes but rejects calls to resign
Australian central bank governor Philip Lowe admitted to mistakes in inflation forecasting today (September 8), but dismissed calls to resign.
A year ago, the Reserve Bank of Australia forecast inflation would be around 1.75% in 2022. Forecasts now put inflation at 7.75%. “This is a very big change and a very large forecast miss,” Lowe acknowledged during remarks at a charity fundraising event.
While he noted other central banks had made similar mistakes, he said the errors had led to “soul
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