The Reserve Bank of Australia’s deputy governor Andrew Hauser has strongly hinted a November interest rate rise was looking more likely because the situation in the Middle East was worse than feared just three months ago.
While futures markets aren’t tipping a Melbourne Cup day rate rise, Mr Hauser said the outlook for inflation was far worse than the RBA had predicted in its August statement on monetary policy.
“The inflation outlook looks materially worse than we projected in the August report,” he told Citi’s Australia and New Zealand Investment Conference in Sydney on Wednesday.
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“On the Middle East, oil prices are even higher, about a third higher than we assumed in the August projection.
“So, the Middle East picture looks worse, we’re seeing higher AI, tech prices feeding through into CPI, not just here but elsewhere.”
