Friday, 28 October 2022

Rate rise expected on Melbourne Cup day likely to be followed by higher inflation outlook

Two of Australia’s biggest banks predict the Reserve Bank will revise the inflation rate to 8% – the highest since March 1990

The Reserve Bank will likely deliver a double dose of bad news next week with a seventh consecutive increase in its key interest rate and an elevated forecast for how high inflation will go before peaking.

Odds are firming among investors that, half an hour before Tuesday’s running of the Melbourne Cup, the RBA will hike its cash rate by 50 basis points. The surprisingly large increase in September quarter consumer prices to a 32-year high of 7.3% was one factor, economists said.

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from World news | The Guardian https://ift.tt/Bsa6XZ0

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