First Reserve Bank meeting under new governor Michele Bullock has the potential to surprise after CPI spike
again, increasing the risk households will need to endure yet another rate rise before Christmas.
In its first rates meeting under new governor Michele Bullock, the RBA will weigh the competing forces of a rising inflation rate well outside its comfort zone and a string of emerging risks – including a faltering economy in China, Australia’s largest trading partner.
Australia’s central bank has lifted rates 12 times since May last year to combat high inflation by making borrowing more costly. Markets are pricing in a strong chance of one final hike, which could come before the end of the year. Inflation had generally been falling from its 8.4% peak before lifting again in August, largely caused by surging global oil prices.
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House values almost back to peak, adding to RBA’s inflation fearsHouse values have climbed for eight consecutive months and almost returned to their COVID-era peak, creating another headache for new Reserve Bank boss Michele Bullock.
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House values almost back to peak, adding to RBA’s inflation fearsHouse values have climbed for eight consecutive months and almost returned to their COVID-era peak, creating another headache for new Reserve Bank boss Michele Bullock.
Read more »
House values almost back to peak, adding to RBA’s inflation fearsHouse values have climbed for eight consecutive months and almost returned to their COVID-era peak, creating another headache for new Reserve Bank boss Michele Bullock.
Read more »
New RBA governor has ‘pretty tough decisions’ to make with her first meeting soonThe Australian’s Associate Editor Graham Lloyd says the new RBA governor has a few “pretty tough decisions” to make soon regarding rate rises. RBA Governor Michele Bullock will hold her first meeting on Tuesday to make a decision on rates. “They were back up a little bit again, the really bad news is overseas where bond markets are rising, they’re signalling more interest rate rises in the US which has led to speculation about – look there’s going to be a profound impact on markets generally,” he told Sky News Australia. “The new governor sits down and has some pretty tough decisions to make going for. “It’s unlikely there’ll be a rise this week but it’s not going to be smooth sailing.”
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Oil spike the first test for new RBA governorShares are set to start the quarter lower as investors brace for any changes in the RBA’s first policy statement under new governor Michele Bullock.
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High petrol prices expected to stay for remainder of 2023Motorists are expected to continue paying more than $2 a litre for petrol as fuel prices rise further. Brent crude oil has reached nearly $100 USD per barrel. Industry experts believe the cost will remain around triple figures until at least the end of 2023. A nine per cent increase in fuel costs helped lift Australia's inflation rate for the first time in four months. Despite the inflation rise, economists do not believe the RBA will raise the cash rate when it meets in October.
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