@jaceew79 What's the problem? RBA is forecasting inflation to be 3% by mid 2025, that's only a little over 2 years away.
If inflation comes down into the 4's by the end of the year as they forecast then it will seem it's well on the way down and we just live with a bit of extra inflation for another year and a half from then.
Every metric they forecast doesn't have to be hit, if unemployment is lower than expected at the end of the year but inflation is trending in the right direction they should have a bit of flexibility.
I know some people want to kill the economy in order to get inflation into the target bracket sooner but the collateral damage would be large and the reality is that if they slam the brakes on too hard the more they'll have to do in order fix the economy later.
The huge immigration rates we are running should be able to get unemployment up without people needing to be fired to do it, ensure wages stay under control as there will be a surplus of people to work and keep GDP growth up even if that comes at the expense of GDP per capita.
If your point is that the future is hard to predict and forecasts could be wrong you'd also think that inflation could come down quicker than expected.
but the collateral damage would be large and the reality is that if they slam the brakes on too hard the more they'll have to do in order fix the economy later
This is the simple point that some loud people on this sub (and other subs) seem to forget. Yeah, going to a 7.5% official cash rate tomorrow will kill inflation. Certainly. But it will also result in a catastrophic recession with hundreds of thousands out of work.
Some people seem to forget that this whole thing is a delicate balancing act.
@jaceew79 having a look at historical unemployment rate there was a point between april 2014 - oct 2014 where unemployment rose 0.6% so it's more than reasonable to expect unemployment to hit 4% by xmas if enough pressure is put on the economy.
