Reserve Bank chief faces inflation data test at Senate hearing
Summarised from 2 outlets · Updated 25 Oct, 02:02 · Archive
The Reserve Bank governor will appear at a Senate hearing as September quarter inflation data is released.
Australia's Reserve Bank governor Michele Bullock and senior Reserve Bank officials are scheduled to appear at a Senate estimates hearing on Wednesday coinciding with the release of September quarter inflation data by the Australian Bureau of Statistics.
Citi economists Josh Williamson and Faraz Syed expect the quarterly trimmed mean—the Reserve Bank's preferred measure of underlying inflation—to print at one per cent, implying annual growth of about 3.6 per cent. This would exceed the Reserve Bank's August forecasts, which implied a quarterly increase of about 0.8 per cent.
Reserve Bank deputy governor Andrew Hauser's recent comments that the inflation outlook appeared 'materially worse' have boosted market expectations. Following his remarks at a Citi conference, market pricing for a November rate rise jumped above 50 per cent. Citi analysts suggest that even a quarterly trimmed mean result of 0.9 per cent would support a rate hike decision at the November 3-4 board meeting, though Williamson and Syed believe the outcome is already determined. Rate hike expectations had been scaled back following softer jobs data that showed employment—the other part of the Reserve Bank's dual mandate—was coming under pressure.
How it is being reported
- Rare chance to see Reserve Bank react to inflation dataStars have aligned for central bank watchers, with the Reserve Bank's top brass set to appear at a Senate hearing as crucial inflation data drops.Perth Now · 25 Oct, 01:34
- Rare chance to see Reserve Bank react to inflation dataStars have aligned for central bank watchers, with the Reserve Bank's top brass set to appear at a Senate hearing as crucial inflation data drops.The West Australian · 25 Oct, 01:34
In this story: Reserve Bank of Australia · Michele Bullock · Andrew Hauser · Australian Bureau of Statistics · Citi
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