If Donald Trump's foreshadowed trade tariffs spark inflation, the Reserve Bank will be ready to act, says the deputy governor
RBA deputy governor Andrew Hauser says if Donald Trump 's planned trade tariffs spark a tit-for-tat trade war, the RBA will respond to each development.RBA deputy governor Andrew Hauser says Donald Trump 's trade tariffs are unlikely to have a significant direct impact on Australia's economy.
He said it was also hard to know with certainty how the tariffs would impact Australia's economy indirectly, because much would depend on the extent to which Australia's biggest partner, China, retaliated against any tariffs, and how global supply chains reacted to any abrupt price changes.Photo shows Donald Trump frowns as he looks off camera while Xi Jinping stands behind him.
"Given this uncertainty, it is important that we don't prejudge the implications of tariffs for policy but monitor developments closely and stand ready to respond appropriately as the facts emerge. It said underlying inflation was still high, but other recent data on economic activity had been softer than expected in November, on balance.
"We're not saying what we might do, but we are acknowledging that there is some softening and our forecast is to see inflation coming back down gradually over the next year.ABC News: Michael Janda"As each quarter goes by, and our forecasts look like they are basically in line … that gives us a little bit more confidence in the future.
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