RBA Reiterates Hawkish Stance, May Rate Hike Appears Likely
Deep News
Feb 11
The Reserve Bank of Australia has issued further strong signals indicating that additional interest rate increases are necessary to tackle inflation. Deputy Governor Andrew Hauser, speaking at a business lunch, stated that inflation remains too high and that the central bank will take all necessary measures to bring it down. He added that the bank must respect the economy's "speed limit," referring to issues of constrained supply coupled with robust demand. Given the RBA's current forecasts, which show inflation lingering above the target band for some time, the likelihood of another rate hike in May appears substantial.
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