RBA Shifts Focus to Taming Inflation Over Full Employment

The Reserve Bank of Australia (RBA) has shifted its focus from full-employment to targeting inflation, which may lead to an economic downturn or recession.

According to recent public commentary, RBA governor and senior staff share this view, prioritizing the return of inflation to target over employment rates.

The potential trade-off is a significant concern, as some experts warn that unanchored inflation would be worse than an economic downturn.