CBA Economist: Central Banks Must Maintain Credibility Amid Inflation Concerns

On April 30, CBA's Chief Economist Luke Yeaman emphasized the importance of central banks maintaining policy credibility in light of ongoing energy supply disruptions and rising inflation expectations, regardless of the developments in the Iran conflict. According to Jin10, the Reserve Bank of Australia has already demonstrated its anti-inflation stance this year and is expected to raise interest rates by 25 basis points in May. However, Yeaman noted that some committee members may still be concerned about the downside risks to economic growth, suggesting that the May decision could be closely contested.