Be prepared for economists and central bankers to get it wrong during Trump 2.0
The RBA's minutes on Tuesday warned of a "wide range" of possible outcomes from the US election result. Right now, economists are just as uncertain.
It’s an open joke among economists that every federal budget and central bank statement carries a disclaimer about the “great uncertainty” of the current situation.
This was certainly the case in the Reserve Bank's latest meeting minutes, released on Tuesday, which revealed the board anticipated a “wide range” of outcomes stemming from the US election and other global events.
The uncertainty was so pronounced that the board stated it was not yet possible to factor in recent developments, as “pertinent details were unknown and still largely unpredictable”.
That might seem like a copout to those seeking straightforward answers about the fallout of global events on Australia’s economy.
