RBA Governor Michele Bullock has ruled out a cash rate cut in the near term and signalled a potential rate hike, which Judo Bank Chief Economic Advisor Warren argued should have been announced already.
RBA Governor Michele Bullock rules out interest rate cut in near term as economists argue central bank should hike rates again
Ms Bullock said stronger forecast public spending along with a rise in household consumption were key factors the bank was evaluating in terms of persistent inflation. Ms Bullock confirmed the board did consider a rate rise before announcing it would keep it the same as it tried to “steer a narrow path”. Picture: NewsWire / Nikki Short
The RBA looked set to raise the cash rate if last week's CPI figures showed inflation continued on an upward trend. While headline inflation jumped from 3.6 per cent to 3.8 per cent, the bank's preferred measure - trimmed mean inflation - dropped from four per cent to 3.9. "Today was another step towards needing to adjust the interest rate higher, because it simply is not high enough to deal with the inflation in the economy.
Economics Economy Inflation Rate Ross Greenwood Australia Sky News Michele Bullock Warren Hogan
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