Published • loading... • Updated
Australia's central bank chief warns inflation risks materialising
Governor Michele Bullock said the board may need to tighten policy again as oil prices, AI investment and firm cost pass-through keep inflation elevated.
- On Friday, September 18, at the House of Representatives, Reserve Bank of Australia Governor Michele Bullock warned that upside inflation risks—the Middle East conflict, an AI investment boom, and extreme weather—are materialising.
- Persistent Middle East instability continues inflating energy prices, while a global AI boom drives labour demand and technology costs, complicating the path to the 2%-3% target.
- Financial markets price in a 90% probability the RBA will lift the current 4.35% cash rate by 0.25 percentage points at the September 28–29 board meeting.
- Following Bullock's testimony, Commonwealth Bank, Westpac, and ANZ Bank revised forecasts to expect an immediate rate hike, with several warning of further increases before year-end.
- Economists at UBS project the cash rate could peak at 4.85% by early 2027, as the RBA board attempts to balance inflation control without stalling economic growth.
Insights by Ground AI
Podcasts & Opinions
42 Articles
42 Articles
UK rate rise bets grow as Bank of England warns on energy prices
The Bank of England held its key interest rate at 3.75 per cent on Thursday, but signalled a more cautious approach to monetary policy as higher energy prices push inflation higher. The central bank’s next rate-setting meeting is scheduled for November 5, with Barclays expecting a 25-basis-point increase as the continuing Middle East conflict raises […]
·Nicosia, Cyprus
Read Full Article
Sydney Morning Herald+3 Reposted by 3 other sources
Reserve Bank’s blunt warning just days before next interest rates decision
Reserve Bank governor Michele Bullock said inflation in Australia was “too high” as she prepares to consider lifting interest rates for the fourth time this year.
·North Sydney, Australia
Read Full Article
Australia's central bank chief warns inflation risks materialising
·London, United Kingdom
Read Full ArticleCoverage Details
Total News Sources42
Leaning Left7Leaning Right9Center7Last UpdatedBias Distribution39% Right
Bias Distribution
- 39% of the sources lean Right
39% Right
L 31%
C 30%
R 39%
Factuality
To view factuality data please Upgrade to Premium
