Particle.news
Download on the App Store
8 ARTICLES
·
15h ago

RBA Signals Caution on Easing as Q3 Inflation Seen Hotter Than Expected

The central bank is setting policy on a one- to two-year outlook, with a highly uncertain neutral rate near 3%.

Governor of the Reserve Bank of Australia Michele Bullock attends the monetary policy decision media conference, in Sydney, Australia, April 1, 2025. REUTERS/Hollie Adams/File Photo
Two women walk next to the Reserve Bank of Australia headquarters in central Sydney, Australia February 6, 2018. REUTERS/Daniel Munoz
Image

Overview

  • Governor Michele Bullock said recent data give the Bank time to judge whether further easing is appropriate, lowering near-term expectations for a cut at the Nov. 3–4 meeting.
  • Assistant Governor Sarah Hunter said underlying inflation for the September quarter is likely stronger than the RBA had anticipated.
  • Officials reported consumption has been a little firmer while employment growth has slowed by more than expected.
  • Bullock noted models put the neutral cash rate around 3.0%, though the estimate carries significant uncertainty.
  • Hunter highlighted weak productivity as a structural drag and flagged elevated global risks, including unpredictable U.S. trade policy.