Reserve Bank Governor Michele Bullock has labelled calls for an interest rate cut this year 'premature' as she conceded it was 'not what households want to hear' amid soaring cost of living pressures.
Reserve Bank Governor Michele Bullock has rejected calls for a rate cut before the end of this year, acknowledging it was"not what households want to hear" but arguing letting inflation remain higher for longer would cause more pain. Reserve Bank Governor Michele Bullock has labelled calls for an interest rate cut this year"premature" as she conceded it was"not what households want to hear" amid soaring cost of living pressures.
"The board's message, though, is that it's premature to be thinking about rate cuts. Inflation is still too high and, in underlying terms, it isn't expected to be back in the top of the band until the end of next year." Equally frustrating for some will be her continued insistence that the majority of families are coping well despite the hard economic conditions, as the news relief remains well beyond the horizon does little to reassure those doing it tough."Those with mortgages are feeling the squeeze on their cashflows from the increase in interest rates over the past couple of years.
Some economists have argued that the RBA must do more, given the mounting pressure on households, suggesting further hikes to interest rates in order to ensure inflation falls faster and cuts can begin sooner. "We need to balance meeting our inflation objective with our full employment objective, that is, achieving the maximum level of employment that is consistent with low and stable inflation," she said.
RBA Household Budgets Cost Of Living Inflation House Economics Committee Labour Market Unemployment Michele Bullock Interest Rates
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
RBA interest rates: No rate cuts before Christmas, says RBA governor BullockMichele Bullock has declared “near-term interest rate cuts are not on the agenda”, warning the economy remained too hot and ruling out decreasing the cash rate before Christmas.
Read more »
RBA interest rates: Why the Reserve Bank’s rates warning won’t mean much to investorsAndrew Hauser says it’s a risk to listen to “false prophets” on interest rates. But those in the market have little choice but to take a position as a crucial turning point looms.
Read more »
RBA interest rates: The Reserve Bank of Australia’s credibility is shotThe central bank’s hawkish pivot has no credibility given it is not willing to do the bare minimum and raise interest rates in line with global peers.
Read more »
RBA interest rates: Traders don’t the Reserve Bank’s ‘no rate cut’ warning this yearBond markets are still wagering that the Reserve Bank will cut interest rates this year even as the central bank said it considered a rise on Tuesday.
Read more »
RBA Deputy Governor cops fiery spray from former Labor ministerFormer Labor senator Stephen Conroy has taken aim at the Reserve Bank's new Deputy Governor Andrew Hauser in a heated live interview.
Read more »
Former assistant governor says childcare pay rise will worry RBA, as rhetorical gap grows with governmentThe Reserve Bank will not look favourably on the government's decision to boost childcare wages given its growing inflation fears, according to a former assistant governor.
Read more »