The RBA seems to doubt Trump will follow through on his most radical policies
At Senate estimates, RBA governor Michele Bullock sounded sceptical about the incoming US president's commitment to election promises like blanket tariffs.
In the past, commentators and economists would say that Donald Trump should be taken seriously, but not literally. Now, as he prepares for a return to the US presidency, the Reserve Bank is continuing that tradition.
When RBA governor Michele Bullock fronted estimates on Thursday, she responded to questions about the new geopolitical landscape with a note of caution about whether Trump would carry out his more extreme plans.
“We have a broad understanding of the way some of these policies, if they are implemented, will work out. But we haven’t done very explicit scenario analysis on what it might mean for monetary policy, because there’s things going in all sorts of directions here," Bullock said in response to tense questioning from Greens Senator Nick McKim.
"Senator, with respect, he says he’s going to do certain things. He doesn’t … actually take up duties until next year. We’ll wait and see what’s going to happen," Bullock said.
