Insight - When it comes to inflation, Australia hopes to remain an island

Inflation dynamics: Pedestrians walking past an entrance to the Southbank shopping area in Melbourne. Lowe is a consistent advocate of higher pay rises as a route to lifting inflation. — Bloomberg

THE Reserve Bank of Australia (RBA) is counting on Australian exceptionalism or, more bluntly, a healthy dose of isolation.

The institution is going to great pains to distance the economy from the faster inflation that’s led policy makers from Wellington to Oslo to raise interest rates, or intimate that hikes are on the way.