Going to be 'very hard' for the RBA to hit inflation target

Going to be 'very hard' for the RBA to hit inflation target in the new economy: Switzer

Sky News contributor Peter Switzer says he thinks "it's going to be very hard" for the Reserve Bank to see inflation hit its target range before increasing interest rates because "the world is so different" economically.

"The kind of stuff that we thought drove inflation has changed before our eyes, so we don't get inflation the way we used to," he said.

Inflation fell to 0.6 per cent over the last quarter, well below the 0.9 per cent figure forecast by private-sector economists.

Annual core inflation now sits at 1.1 per cent with Reserve Bank Governor Philip Lowe pledging not to raise interest rates until that number returns to the two to three per cent target range.


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