Something for Everybody in RBA's Messaging; Reputations on the Line
Dow Jones
Aug 12
0455 GMT - The Reserve Bank of Australia pretty much covered all the policy bases this week with an on-hold interest rates decision mixed with dovish forecasts for lower inflation. To make sure there was something for everybody, there were also explicit warnings during the press conference that a further rate increase remains quite possible. The hawkish press conference held by Gov. Michele Bullock may reflect the central bank's worry that inflation has remained too high for too long, and another failure in getting it back to target will do the RBA significant reputational damage. Bullock really won't chance that.
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