Central Banks
RBA’s Bullock Set for First Rate Hike as Inflation Lingers
- Economy experiencing sticky services prices, tight job market
- Australia tightened more cautiously than the US amid debt woes
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Australia’s central bank is forecast to raise interest rates on Tuesday, ending a four-meeting pause as persistent inflation and broader economic resilience suggest a further clampdown is needed to cool prices.
The Reserve Bank will lift its cash rate to a 12-year high of 4.35%, an overwhelming majority of economists surveyed by Bloomberg predict, in what will be Governor Michele Bullock’s first hike since taking charge. The RBA is trying to ensure inflation falls back inside its 2-3% target by the end of 2025 and may signal further tightening is needed.