RBA Warns of Stronger-Than-Expected Q3 Inflation, Potentially Delaying Rate Cuts
Reserve Bank of Australia Assistant Governor Sarah Hunter signaled persistent inflationary pressures at the Citi Australia & New Zealand Investment Conference. July-September inflation appears hotter than projected, particularly in services and housing sectors, based on preliminary July-August data.
The RBA's November Monetary Policy Statement will incorporate revised forecasts as policymakers adopt a data-dependent stance. All eyes now turn to October 29's Q3 inflation release - a critical test for the central bank's disinflation narrative.
With three rate cuts already implemented this year bringing the cash rate to 3.6%, the RBA maintained status quo last month. Hunter emphasized continued vigilance: "The board will monitor developments and make further adjustments to monetary policy as needed."
