The forgotten policy making the RBA's inflation fight harder

The Reserve Bank has failed to get inflation back to target for five years. But while government spending, two international wars and an economy bolstered by AI-related investment have all been blamed for inflation running too hot, there may be another more prosaic factor behind it. UBS economists George Tharenou, Stephen Wu, Izzy Lowe and Tatiana Bodrova, in a fresh note this week explaining the many reasons they expect a rate hike in September, described a 'pattern by many global central banks to attempt to target 'dual mandates'' that has 'diluted' their willingness to bring down inflation quickly.