Australian central bank warns of possible fifth rate hike

Full text

Andrew Hauser says the central bank faces ‘hard choices’ as it looks to balance the risks of entrenched inflation with the desire to protect the labour market

Andrew Hauser, the Reserve Bank’s deputy governor, has reignited talk of a fifth interest rate hike on Melbourne Cup day, warning of “hard choices” ahead in response to an inflation outlook that “looks materially worse” than the central bank had expected two months ago.

Hauser, speaking at an investment bank conference in Sydney on Wednesday morning, said the RBA monetary policy board members were juggling a slowing economy with fears that Australians were starting to lose faith in the central bank’s ability to bring inflation back to the 2.5% target.

Continue reading...