FOREX TradingCharts.com

Financial News: RBA Chief Lowe Signals More Rate Hikes

RBA Chief Lowe Signals More Rate Hikes

06/21/2022 - 04:19:00 (RTTNews)

(RTTNews) - Reserve Bank of Australia Governor Philip Lowe said more interest rate increases are likely in the coming months as the central bank will do what is necessary to ensure that inflation returns to the target range over time.

Although the interest rate is still very low, the governor played down the market expectations for an increase in the rate to 4 percent by the year-end as such an action would damage household spending. Lowe also said that a recession is not on the horizon.

"As we chart our way back to 2 to 3 percent inflation, Australians should be prepared for more interest rate increases," Lowe said in a speech to the American Chamber of Commerce in Australia on Tuesday.

"How fast we increase interest rates, and how far we need to go, will be guided by the incoming data and the Board's assessment of the outlook for inflation and the labor market," he added.

Lowe said inflation is now expected to peak at around 7 percent in the December quarter. Following this, inflation will begin to decline by early next year.

Early this month, the RBA had raised the cash rate by a half percentage point to 0.85 percent, which was the biggest hike since 2000.

The minutes of the June meeting, released on Tuesday, showed that members discussed raising the cash rate target by 25 basis points or by 50 basis points. Members said both options would leave the cash rate below 1 percent, which would still be highly stimulatory and further increases would be required.

Lowe said the board will discuss another 25 or 50 basis points rate hikes at the July meeting.

Further, he said the board will closely monitor how household spending responds to higher interest rates. Households experienced a decline in real incomes because of the higher inflation and some of the large gains in housing prices over recent years being unwound.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2022 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


BoJ Tankan Survey On Tap For Friday (05 min(s), 23 sec(s) ago)
(RTTNews) - The Bank of Japan will on Friday release its quarterly Tankan Survey of business senti ...Full Story»

French Inflation Accelerates More Than Forecast; Producer Prices Fall (07 hr(s), 44 min(s), 23 sec(s) ago)
(RTTNews) - France's consumer price inflation accelerated at a faster-than-expected pace in Ju ...Full Story»

Chicago Business Barometer Drops To Nearly Two-Year Low In June (07 hr(s), 48 min(s), 23 sec(s) ago)
(RTTNews) - MNI Indicators released a report on Thursday showing growth in Chicago-area business a ...Full Story»

Riksbank Lifs Interest Rate By 50 Bps; More Hikes To Follow (07 hr(s), 50 min(s), 23 sec(s) ago)
(RTTNews) - Sweden's central bank raised its interest rate by half a percentage point on Thurs ...Full Story»

Portugal Inflation Highest Since December 1992 (07 hr(s), 49 min(s), 23 sec(s) ago)
(RTTNews) - Portugal's consumer price inflation accelerated further in June to reach its highe ...Full Story»

Brazil Unemployment Rate Lowest Since 2015 (08 hr(s), 11 min(s), 23 sec(s) ago)
(RTTNews) - Brazil's unemployment rate decreased in the three months ended May to reach its lo ...Full Story»

U.S. Personal Income Increases 0.5% In May, In Line With Estimates (08 hr(s), 13 min(s), 23 sec(s) ago)
(RTTNews) - Personal income in the U.S. increased in line with economist estimates in the month of ...Full Story»

U.S. Weekly Jobless Edge Down To 231,000 (08 hr(s), 30 min(s), 23 sec(s) ago)
(RTTNews) - A report released by the Labor Department on Thursday showed a modest decrease in firs ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

BoJ Tankan Survey On Tap For Friday

06/30/2022 - 18:01 PM (RTTNews)
(RTTNews) - The Bank of Japan will on Friday release its quarterly Tankan Survey of business senti ...Full Story>>

French Inflation Accelerates More Than Forecast; Producer Prices Fall

06/30/2022 - 10:22 AM (RTTNews)
(RTTNews) - France's consumer price inflation accelerated at a faster-than-expected pace in Ju ...Full Story>>

Chicago Business Barometer Drops To Nearly Two-Year Low In June

06/30/2022 - 10:18 AM (RTTNews)
(RTTNews) - MNI Indicators released a report on Thursday showing growth in Chicago-area business a ...Full Story>>

Portugal Inflation Highest Since December 1992

06/30/2022 - 10:17 AM (RTTNews)
(RTTNews) - Portugal's consumer price inflation accelerated further in June to reach its highe ...Full Story>>

Riksbank Lifs Interest Rate By 50 Bps; More Hikes To Follow

06/30/2022 - 10:16 AM (RTTNews)
(RTTNews) - Sweden's central bank raised its interest rate by half a percentage point on Thurs ...Full Story>>

Do not sell my personal information

Copyright © 2022. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.