Reserve Bank of Australia's blunt messaging raises questions over peak interest rates
Unemployment has risen to 4.7 per cent while inflation has eased slightly, pulling against the central bank's tougher tone.
Published
The Reserve Bank of Australia's recent communication has been described as blunt, and that has raised fresh questions over how high interest rates will go, the Wall Street Journal reports. The tone has been hawkish, meaning it leans toward higher rates.
The tougher tone sits awkwardly against a softer job market. September's jobs report showed unemployment rising to 4.7 per cent and payrolls falling by nearly 40,000. Inflation has eased slightly.
That gives the bank room to sound tougher without committing to near-term rises. Weaker employment would normally argue against further increases, even as officials stress upside risks, meaning the risk that inflation runs above forecast. The signals are mixed, so the path for rates is unsettled rather than clearly tilted toward tightening.
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