Reserve Bank of Australia's blunt tone leaves the peak for interest rates in doubt
The Wall Street Journal reports the bank's plain language has raised fresh questions over how high rates will go. Unemployment has risen to 4.7%.
The Wall Street Journal reports that the Reserve Bank of Australia's blunt messaging has raised fresh questions over how high interest rates will go.
The bank raised its cash rate by 25 basis points to 4.60% on September 29, according to Finder. That was the fourth rise this year and took the rate to a 15-year high. The decision of the bank's Monetary Policy Board was unanimous, according to a summary of the minutes published by Commonwealth Bank. Commonwealth Bank's Belinda Allen called the minutes "decisively hawkish". Governor Michele Bullock said at the press conference that the three earlier rises had not yet worked through the economy, ABC News reported.
The jobs data points the other way. September's report showed unemployment rising to 4.7% and payrolls falling by nearly 40,000. Inflation has eased slightly. Weaker employment would normally argue against further increases, even as officials stress the risks that prices rise faster.
The next policy meeting is on November 3, according to Finder.
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