“Embedded inflation” will force RBA to hike again
Advertisement
Last week’s ultra-hawkish commentary from RBA deputy governor Andrew Hauser immediately sent expectations of interest rate hikes among economists and in financial markets skyward.
Hauser’s central message was that inflation is proving more persistent and “materially worse” than expected, inflation expectations are beginning to drift higher, and the RBA remains prepared to tighten policy further. He also downplayed concerns about rising unemployment.
On Sunday night, RBA Assistant Governor (Economic) Sarah Hunter delivered equally hawkish commentary to 60 Minutes reporter Adam Hegarty, suggesting the Bank has its finger firmly on the interest rate trigger:
The full text of this article is available to MacroBusiness subscribers
Cancel at any time through our billing provider, Stripe
About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
Advertisement