Odds of fifth interest rate hike this year likely to shorten as RBA deputy warns inflation outlook ‘worsening’
Summary
The Reserve Bank of Australia (RBA) deputy governor Andrew Hauser said inflation is worse than expected, which may lead to another interest rate increase. The RBA faces a tough decision between raising rates to fight inflation or protecting the economy and jobs from getting weaker.Key Facts
- Andrew Hauser is the deputy governor of the Reserve Bank of Australia.
- Inflation in Australia is higher and more persistent than the RBA expected two months ago.
- The RBA’s next meeting is scheduled for November 2-3.
- Financial markets see about a one-in-three chance of another rate rise to 4.85%.
- Some Australians and businesses are starting to expect inflation around 3.5% as normal.
- Higher interest rates and petrol prices are slowing down economic activity.
- Unemployment rose to 4.7%, the highest in five years.
- The RBA must decide between raising rates further to control inflation or avoiding hurting the economy and labor market.
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