Australian PM Albanese says tax cuts have no implications for RBA inflation forecasts

<p>To the extent that tax cuts put more money in consumer pockets they will increase demand and add to inflationary pressure. </p><p><a href="https://www.forexlive.com/centralbank/jp-morgan-remains-positive-on-the-australian-dollar-cite-rba-tax-cuts-20240125/" target="_blank" rel="follow">JP Morgan made a similar point:</a></p><ul><li>fiscal policy should be supportive, tax cuts coming which will "therefore be a tailwind for growth (and inflation), allowing the economy to sustain higher interest rates than previously"</li></ul><p>Australian PM Albanese </p>

This article was written by Eamonn Sheridan at www.forexlive.com.