VIEW: CBA Suggest The Inflation Tgt May Need To Be Reviewed At Some Point

CBA suggest that "in light of the recent shift in rhetoric by the FOMC, RBNZ, the Bank of England and Bank of Canada the RBA appears incredibly dovish, particularly given the relative strength of the Australian economy. The RBA Governor continues to point out a range of options on why wages growth will remain low despite job vacancies being elevated and labour market supply being so constrained. It is almost as if the RBA does not believe that it can achieve the objective it has set itself of wages growth of at least 3% per annum. If that is the case it may be time to review the inflation target given the RBA has a higher inflation target than all of the other major central banks. But that is probably a conversation for another day."