With interest rates and inflation dominating the headlines, our regular economics commentator, University of Melbourne, Professor Neville Norman, is asking us to challenge how the two are connected — or not. He says the Reserve Bank appears to be living in a “fairytale” world, where big, external price makers do not exist. Nevertheless, Neville says inflation is likely to have peaked, and he outlines six positive things that will improve the economic situation for small businesses in coming months.

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