Why an economist is concerned about the Reserve Bank pause

Following news earlier today the Reserve Bank is keeping the cash rate at 4.1 per cent an economist has shared he’s not surprised by the news as inflation numbers were “lower last week.”

Chief economist at AMP, Shane Oliver says the decision to pause is sensible but has concerns it’s a temporary pause.

“Only thing is that much of the commentary the Reserve Bank put out today … is similar to what they put out back in April where the pause back then was proved to be temporary,” he told Heidi Murphy, filling in for Tom Elliott.

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