Business & Finance
RBA faces renewed pressure as market bets on interest rate hike surge
The Reserve Bank faces persistent inflation pressures and growing market expectations of a fourth increase, according to The Guardian.
The short version
- Reserve Bank of Australia policymakers had hoped three rate hikes this year would return inflation to 2.5% by late next year.[The Guardian]
- Financial markets now indicate a greater than 70% probability of an additional rate increase on 29 September.[The Guardian]
- RBA deputy governor Andrew Hauser noted the public is furious over prices, while explaining that a gradual strategy was chosen to protect jobs.[The Guardian]
Key facts
- The Reserve Bank's board previously expected three interest rate rises this year to bring inflation back to 2.5% by the end of next year.[The Guardian]
- Financial markets are pricing in more than a 70% probability of another policy rate increase on 29 September.[The Guardian]
- Deputy governor Andrew Hauser acknowledged public anger over high inflation and stated the board chose a gradual path to safeguard employment.[The Guardian]
- The global benchmark oil price has climbed above $US100 a barrel for the first time since July.[The Guardian]
What remains uncertain
- Whether the Reserve Bank will execute another rate rise at its 29 September meeting remains uncertain despite high market-implied probabilities.[The Guardian]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.