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From 2008 until 2019, the average GDP growth rate has been approximately 2.5% and inflation has been approximately 2.1%. Suppose that new data comes in
From 2008 until 2019, the average GDP growth rate has been approximately 2.5% and inflation has been approximately 2.1%.
Suppose that new data comes in after May 2020 that is very different to the forecasts. Suggest one possible change in the data that might cause the RBA to want to adjust the target cash rate, and explain how and why they would make this change.
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