RBA assistant governor for economics Luci Ellis on Wednesday has addressed the Urban Development Institute of Australia 2022 national conference in Sydney on "Housing in the Endemic Phase".
The comments have been listed by central bank observers for any clues to the likely speed of interest rate hikes in coming months. Besides insights to the housing sector, on monetary policy, Ellis argued that there will be more rate rises from here but cannot say where the peak will be from here.
Despite the prospects of further rate increases, the Aussie has remained in the early Asians session sell-off as the US dollar picks up a bid, retracing back to test the vicinity of the early New York session highs as per the DXY index.
Meanwhile, the RBA raised the cash rate to 0.35 per cent from a record low 0.1 per cent this month, the first increase in over a decade, in the face of a spike in inflation to 5.1 per cent.
The comments today from Ellis are a rehash of the minutes of that board meeting that agreed that further increases in interest rates would likely be required to ensure inflation returns to the two to three per cent target over time.
At this stage, the market has priced in a further interest rate rise of between 25 basis points and 50 basis points at its June 7 board meeting, and a rate of over 1.5 per cent by early next year.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.