Reserve Bank split on rate hike as fresh data awaited

Summarised from 2 outlets · Updated 15 Nov, 01:31 · Archive

Australia's Reserve Bank was split on its latest interest rate increase, with three of nine board members voting against it.

The Reserve Bank of Australia raised the cash rate to 4.85 per cent in November, marking its fifth consecutive increase. However, three of the nine board members voted against the hike, signalling disagreement within the central bank on the decision.

Governor Michele Bullock acknowledged the split vote but said further rate increases could not be ruled out. 'It is critical that we stop expectations for high inflation from becoming embedded in price-setting decisions across the economy or the problem will only get worse,' she said at the time of the announcement.

Detailed minutes of the November meeting will be published on Tuesday, explaining the reasoning behind the decision. Two further pieces of economic data will follow: labour force figures for October on Thursday, with economists expecting the unemployment rate to remain at 4.7 per cent and employment growth above 20,000 jobs. These figures will indicate whether a sixth rate increase is likely before year's end.

How it is being reported

• Fresh light to be shed on split interest rate hike callUnemployment data will provide more information for the Reserve Bank on whether it will end the year with a sixth increase to the cash rate.Perth Now · 15 Nov, 01:01
• Fresh light to be shed on split interest rate hike callUnemployment data will provide more information for the Reserve Bank on whether it will end the year with a sixth increase to the cash rate.The West Australian · 15 Nov, 01:01

In this story: Reserve Bank of Australia · Michele Bullock · Australia · NAB · Josh Copeland

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