Blogotariat

If you’re looking for clues about whether the Reserve Bank has any interest rate rises left, Governor Michele Bullock offered several in her statement after Tuesday’s board meeting, saying:

• the latest monthly figures showed inflation “continuing to moderate”

• inflation expectations remained “consistent with the inflation target”

• wages growth was “not expected to increase much further”.

Since Australia’s Reserve Bank hiked interest rates two weeks ago, there have been two important developments – one in the United States and the other in the United Kingdom.

If it’s not clear to you why events overseas influence Australia’s interest rates, which are meant to be set to control Australian inflation, read on.

US and UK inflation close to zero

We haven’t been complete masters of our own destiny since the Australian dollar was floated 40 years ago next month.