Betting on a rate hike
More signs point to an interest rate hike next month after our 4 major banks placed their bets on a Melbourne Cup day interest rate rise. Earlier this week, a larger-than-expected inflation kick and Reserve Bank Governor Michele Bullock’s comment that rates will go up if inflation’s not coming down enough divided economists on whether the central bank’s board will raise the 4.1% cash rate to 4.35%. While Bullock kept mum on the likelihood of a November rate rise at her first Senate committee grilling yesterday, she said the central bank is “wary, and we don’t know if the job has been done yet”. All things considered, the big banks have now hedged their bets, with Westpac’s chief economist/former RBA Assistant Governor Luci Ellis saying the prediction of reaching inflation of 3.9% by the year’s end “seems a long way out of reach now”. Giddyup…
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