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 rates
  • must show members of the public that CPI will come down to target
Philip Lowe gives a back hand slap to rate rises

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%.