Markets bet 95pc chance of September rate hike after latest RBA comments
If you are struggling with current interest rates, the Reserve Bank's leaders delivered the sobering message that they are only just getting back to a "more sensible level".
Markets are betting on a 95% chance of a September rate hike after recent Reserve Bank of Australia (RBA) comments. Deputy Governor Andrew Hauser stated that the world has reached a more sensible level of long-term global real interest rates compared to a year or two ago. Economists and financial markets are expecting a September increase, with the possibility of another in November.
The Monetary Policy Board will meet on September 28-29 to decide the next move in the cash rate target. Former RBA assistant governor and current Westpac chief economist Luci Ellis believes that the board is signaling its desire to raise rates, making September a genuine possibility. RBA Governor Michele Bullock hinted that the bank's ability to "look through" higher oil and fuel prices might be diminishing, as they have been elevated for longer than anticipated. This could impact inflation expectations and the bank's policy decisions.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
