1 December 2022 | Other

Sally Auld says that Australia is “playing with fire” by being inflation-tolerant

Sally Auld, director of investments at JBWere Ltd said that the central bank of Australia is signaling a higher tolerance for inflation, which is very risky. These are attempts to slow the growth of policy tightening and to provide a soft landing.

This quarter, inflation is projected to peak at 8% and is not expected to return to the target level of 2-3% set by the Reserve Bank of Australia (RBA) until 2025. Consequently, the RBA is raising interest rates by a quarter of a percentage point and is prepared to pause for an assessment of its actions.

On Thursday, Auld moderated a group of economists at the Australian Asset-Backed Securities Forum in Sydney. There she expressed her opinion, saying Australia is "playing with fire".

The RBA was the first to slow the rate of tightening. Governor Philip Lowe is confident in the ability to slow consumer prices, keeping the economy from going into recession. He compares wage growth and inflation expectations to those in the U.S. and the U.K., saying that in Australia they are still contained and low.

Company MarketCheese
Period: 28.09.2026 Expectation: 4000 pips
Buy USDCAD while US inflation remains sticky
28 August 2026 42
Period: 11.08.2026 Expectation: 740 pips
Go long on Brent crude up to $95
28 August 2026 41
Period: 27.09.2026 Expectation: 4650 pips
Invest in USDJPY up to its all-time high of 164.00
27 August 2026 50
Period: 30.09.2026 Expectation: 500 pips
Sell ​​GBPUSD down to 1.3540
27 August 2026 30
Gold buy
Period: 10.09.2026 Expectation: 300 pips
Buy gold with $4,900 in sight
27 August 2026 48
Period: 30.09.2026 Expectation: 250 pips
Buying EURUSD from 1.1650
26 August 2026 40
Go to forecasts