RBA Gov. Lowe says Australian inflation expectations are still well anchored

Reserve Bank of Australia Governor Lowe, speaking at an event in Thailand:

• inflation expectations in remain well anchored
• household spending in Australia has been resilient to the higher interest rates so far
• in this cycle policy lags are likely to be longer
• the Reserve Bank of Australia is attempting to slow inflation without too much negative impact on the economy
• central banks are going to be confronting much greater variance in inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term rates
• must show members of the public that CPI will come down to target

The Reserve Bank of Australia meet on December 6. a +25bp rate hike is expected. I have seen expectations of a +15bp hike, which will bring the cash rate back to its regular 0, 0.25, 0.5, 0.75 little figures but I am not holding my breath for this.

The current cash rate in Australia is 2.85%. A 15bp hike would bring it to 3.0%.