The RBA doesn’t have to ‘blindly follow’ the US Federal Reserve
Just because the US Federal Reserve moves one way doesn’t mean the RBA has to “blindly follow” what America does, says AMP Deputy Chief Economist Diana Mousina.
“Central banks around the world always look to what the US Federal Reserve do,” she told Sky News Business Editor Ross Greenwood.
“Both as a leading indicator for their own economy because US inflation trends have really led Australian inflation by about six months or so.
“And also of course the impact interest rate expectations have from the US to financial markets which impacts Australia.
“The RBA here has to set interest rate settings that are appropriate for Australia.”