Australians Need Assurance on ‘Toxic’ Inflation: RBA

High inflation is toxic but sharp deflation caused by excessive interest rate hikes is even worse. That’s the view of Reserve Bank of Australia (RBA) deputy governor Andrew Hauser, which he shared in his first public appearance as the central bank’s second-in-command. Most if not all central banks think going hard on rate hikes to cause a recession and bring down inflation was “not a sensible strategy”, Mr. Hauser told the audience at the Sky News Economic Outlook on June 7. “Because you will bring inflation to target and then you’ll keep going. “There’s one thing more costly than inflation, and that’s sharp deflation.”...