Sky News host Chris Kenny says as inflation falls the Reserve Bank remains “unlikely” to be encouraged to reduce interest rates.
“Just on inflation, the figures came out today and on the face of it they were good news. Inflation on all readings is down, and on the headline number it’s below three percent, that is, within the Reserve Bank's target range,” Mr Kenny said.
“Yep, the trouble is that much of the fall in inflation has come from the lower power prices, artificially lowered by billions of dollars in extra government spending via the power rebates. Now, they helped, for now sure, they are lowering power bills, but that's unlikely to encourage the reserve bank to cut interest rates.”
