Households and businesses are bracing for another blow when the Reserve Bank meets on Melbourne Cup Day with new governor Michele Bullock widely expected to hike rates.
With markets and economists widely expecting the RBA to raise the cash rate at its Melbourne Cup Day meeting, households and businesses are bracing for further pain.
NAB chief economist Alan Oster said concerns of inflation remaining higher for longer would likely lead the RBA board to lift the cash rate. “The critical question is whether it can plausibly argue that inflation will still fall back to its target band by the second half of 2025,” Mr Bloxham said. But households are facing a painful squeeze as the central bank has ratcheted up interest rates 12 times since May last year.
“I was hoping that we had hit the very peak but with October’s inflation figures coming in higher than expected it, it’s inevitable we will see a rise tomorrow on Cup day.
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