RBA's Kent says again that there are further rate hikes ahead

Reserve Bank of Australia Assistant Governor Kent:

• fall in trade-weighted A$ will add only modestly to inflation
• while A$ down 14% on US$ this year, its trade-weighted index has fallen only 2%
• estimate dip in the TWI will add only 0.2 ppt to CPI 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 over a few years
• A$ TWI has moved broadly in line with fundamentals, commodity prices
• broad rise in US$ will raise import costs for many countries
• higher US$ will restrain demand for u.s. goods, commodities Commodities Commodities are assets that are either naturally grown or occurring in the environment. Most commonly this includes precious metals such as gold, silver, and palladium.Beyond metals, commodities can also focus on agricultural or industrial goods that are central to manufacturing or other sectors. This includes crude oil, copper, wheat, and others.Relative to other assets, commodities are an extremely complex form of investment, with many similarities and differences to existing products.Commodit Commodities are assets that are either naturally grown or occurring in the environment. Most commonly this includes precious metals such as gold, silver, and palladium.Beyond metals, commodities can also focus on agricultural or industrial goods that are central to manufacturing or other sectors. This includes crude oil, copper, wheat, and others.Relative to other assets, commodities are an extremely complex form of investment, with many similarities and differences to existing products.Commodit Read this Term and global inflation
• strong US$ of concern to emerging markets with high levels of us$ debt
• Australian offshore debt well hedged, and higher US rates should not affect local bank borrowing costs
• repeats RBAboard expects to increase interest rates further in the period ahead
• size and timing of rate increases will depend on incoming data

Headlines via Reuters