Some leading economists are calling for the Reserve Bank of Australia's (RBA) inflation target to be lifted, while others believe this would be a grave mistake. Leading economists Joseph Stiglitz and Bernie Fraser are calling for either a raise or abandonment of the RBA's set inflation target of between 2% and 3%. Many economists believe this would be a disaster for investors, potentially slashing $A140 billion or 12% from superannuation savings, and pushing mortgage interest rates up to 10.25%.
|
