Central banks have a tendency to ‘overshoot’

Deloitte Access Economics’ Dr Pradeep Philip says central banks have a tendency to “overshoot” and “go a bit too far” when trying to slow economies down.

“Interest rates do pack a punch,” he told Sky News Australia.

Dr Philip said the Reserve Bank of Australia has sided in “attacking inflation”.

“Now it has got to pause and think about the effect on the economy.”

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