Central Banks
RBA Won’t Hesitate to Hike If CPI Outlook Raised Materially
- Central bank aims to return CPI to target in reasonable time
- Governor working with treasurer to modernize, clarify mandate
Michele Bullock
Photographer: Lisa Maree Williams/BloombergThis article is for subscribers only.
Australia’s central bank “will not hesitate” to raise interest rates further if there’s a material upgrade to its inflation outlook, new Governor Michele Bullock said, in her strongest reference yet to the threat of renewed price pressures.
“Our focus remains on bringing inflation back to target within a reasonable timeframe, while keeping employment growing,” Bullock said in a speech Tuesday. The RBA board meets on Nov. 7 to decide policy, with money markets seeing just under a 40% chance of a hike to take the cash rate to 4.35%.