RBA Gov. Lowe says Australian inflation expectations are still well anchored

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RBA Gov. Lowe says Australian inflation expectations are still well anchored

<p>Reserve Bank of Australia Governor Lowe, speaking at an event in Thailand:</p><ul><li>inflation expectations in remain well anchored</li><li>household spending in Australia has been resilient to the higher interest rates so far</li><li>in this cycle policy lags are likely to be longer</li><li>the Reserve Bank of Australia is attempting to slow inflation without too much negative impact on the economy</li><li>central banks are going to be confronting much greater variance in <a href="https://www.forexlive.com/terms/i/inflation/" target="_blank" id="ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_3" class="terms__main-term">inflation</a> rates</li><li>must show members of the public that CPI will come down to target</li></ul><p>The Reserve Bank of Australia meet on December 6. a +25bp rate hike is expected. I have seen expectations of a +15bp hike, which will bring the cash rate back to its regular 0, 0.25, 0.5, 0.75 little figures but I am not holding my breath for this. </p><p>The current cash rate in Australia is 2.85%. A 15bp hike would bring it to 3.0%.</p>

                This article was written by Eamonn Sheridan at forexlive.com.

Source: RBA Gov. Lowe says Australian inflation expectations are still well anchored

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