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Australia's 'perfect economy' set for a wake-up call - and the world is watching

2 15 0
30.04.2019

Anyone who still thinks Australia's economy is an all-conquering model of perfection is likely to get a wake-up call soon.

Australia's economy is losing momentum.Credit:Daniel Munoz

A nearly 28-year run of expansion has had people abroad fawning over life Down Under - Federal Reserve Chairman Jerome Powell among them. For all the superlatives, though, the local central bank considers everything far from rosy. Reserve Bank of Australia officials never really bought the hype. Notwithstanding, the policy landscape has undergone a big shift the past two months.

The chances that the RBA will deliver an interest-rate cut as soon as next week rose after figures April 24 showed a significant slowing in inflation. As in many developed countries, and quite a few emerging markets, the pace of price increases is consistently below target. Growth isn't collapsing, but it could do with some perking up.

So why pull the trigger when many others are talking dovish but balking at action? In essence:........

© The Age