Australia's central bank has held its policy steady for a year, judging the current cash rate of 4.35% - up from the 0.1% during the pandemic - is restrictive enough to bring inflation to its target band of 2-3% while preserving employment gains. Headline inflation ...
The article discusses the prediction of financial services industry observers that Reserve Bank of Australia (RBA) may raise its interest rates as inflation reached the 16 year high. The figures show that underlying inflation is between 3.4% to 3.8%, which exceeds by far the RBA target band of...
Core inflation is also likely to accelerate past 4.0% and further away from the RBA's target band of 2-3%. This is a major reason markets are priced for another half-point hike in August and rates reaching at least 3.0% by the end of the year. Lowe himself recently conceded that there...
All of which should help moderate inflation over time. Core inflation hit a 17-year high of 4.2 percent in the first quarter, uncomfortably far above the RBA's 2 to 3 percent target band. "They're still concerned about inflation because of the pressure from commodity prices, but they seem...
The RBA didn’t ‘explicitly’ consider lifting rates in September but remain focussed on waiting for evidence that inflation is moving sustainably to the target band before pivoting. The RBA was wrong on the way up and the Bank may well be wrong on the way down. The leading ...
A choice modelling approach reveals asymmetry in RBA policy such that the RBA is more concerned about inflation rising above the target band, and the threshold for cutting rates is greater than that required to hike rates. While there is evidence of the RBA following mandated objectives, the ...
All of which should help moderate inflation over time. Core inflation hit a 17-year high of 4.2 percent in the first quarter, uncomfortably far above the RBA's 2 to 3 percent target band. "They're still concerned about inflation because of the pressure from commodity prices, but they seem...