AUSTRALIA’S CENTRAL BANK DEBATES RATE HIKES – They will debate if 4 rate hikes this year are sufficient to return inflation to target
Australia’s central bank governor said that policymakers will debate next week if four rate hikes this year are sufficient to return inflation to target, while warning domestic price pressures remain elevated.
Coupled with hot inflation data for the third quarter, the hawkish comments led markets to price in an 88% probability that the Reserve Bank of Australia will lift the current 4.6% cash rate by a quarter point next week, up from 69% before.
RBA Governor Michele Bullock told lawmakers oil and related prices had increased sharply again and would add materially to inflation as the conflict in the Middle East re-escalated.
