Please click the link below to view Shane Oliver’s views on the threat of global deflation.
Key points raised are
- Falling inflation on the back of falling commodity prices and global spare capacity indicates deflation is more of a threat globally than a surge in inflation
- Further monetary easing in Europe, Japan and elsewhere should help head the threat off but it’s worth keeping an eye on.
- Low interest rates will remain, with further easing likely outside the US and another RBA rate cut.
