OCR adjustment won’t repair structural inflation problem
ANALYSIS: Today’s inflation persistence is not a mystery, it is the predictable consequence of an economy that has struggled to expand its productive capacity.
The latest consumer price index release – showing December-quarter inflation at 3.1% and edging back outside the Reserve Bank’s target band – has predictably revived calls for another lift in the official cash rate. The argument is straightforward: inflation is too high, so monetary policy
