The RBA governor has ditched his hawkish tone and the odds now seem to favour just one more rise, probably in April – but that could change
So if there is merely “further tightening coming”, the odds do seem to favour one rather than more rate rises to come. And if Lowe is consistent, we can speculate that April would be the occasion., that consistency is Lowe’s thing.
“[If] you are doing [rate rises] consistently over a number of meetings, that keeps public attention on monetary policy and the seriousness of the task that we have,” Lowe told the MPs.“So when we are changing them each month, that gets a lot of coverage ... people focus on it incredibly strongly,” he went on. “The world is uncertain, and when it is uncertain, it is better to move consistently and predictably rather than in steps.
And as Lowe warned on Tuesday, global inflation “remains very high”, including for services, which lately happens to be the main source for Australian price pressures too.Even before the RBA started lifting rates last year, it wasThe impact of the $270bn of such mortgages shifting from relatively low to suddenlyAnd given the lagging impact – up to two years – of interest rates on the wider economy, Lowe may feel his work is almost done. Save for one last Easter bunny.
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