Tuesday 15 November 2022 04:35 AM Reserve Bank of Australia finally admits making a huge mistake trends now
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The central bank is unlikely to attach dates to future interest rate movement forecasts after the backlash sparked by its cash rate predictions during the Covid-19 pandemic.
As part of a review of its more prescriptive 'forward guidance' measures adopted during the pandemic, the Reserve Bank will default to forward guidance that is 'short term and narrative in nature'.
However, the bank has not ruled out using strong forward guidance again if necessary.
The Reserve Bank is unlikely to attach dates to future interest rate movement forecasts after the backlash sparked by its cash rate predictions during the Covid-19 pandemic (pictured, a woman holds shopping bags in Pitt St Mall, Sydney)
The RBA attracted criticism for forward guidance issued during the pandemic that implied the cash rate would remain unchanged until inflation was sustainably within its two to three per cent target, which was not expected to occur before 2024.
Despite this guidance, the bank has been lifting
