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Bernie Fraser chides RBA for budget day rate cut 'ambiguity'

Former Reserve Bank of Australia governor Bernie Fraser has criticised last week's surprise official interest rate cut and warned that more monetary policy stimulus won't be able to boost growth or reinvigorate inflation.

Bernie Fraser chides RBA for budget day rate cut 'ambiguity'
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Mr Fraser, who is considered the architect of the Reserve Bank's two to three per cent inflation target, said he was not "in the slightest" bit concerned about letting inflation undershoot the range for a lengthy period of time – which contradicts the central bank's quick action against signs of deflation in the March quarter.

Read the full story at AFR.com

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