RBA: Size, timing of future rate rises will be determined by the data and outlook for inflation, labor market
Following are the key headlines from the October RBA monetary policy statement, via Reuters, as presented by Governor Phillip Lowe.
Rate rise will help achieve more sustainable balance of demand and supply.
Board is committed to returning inflation to the 2–3 per cent range over time.
Cash rate has been increased substantially in a short period of time.
Size and timing of future rate rises will be determined by the data and outlook for inflation and the labor market.
Medium-term inflation expectations remain well anchored, and it is important that this remains the case.
Board expects to increase interest rates further over the period ahead.
Given the tight labour market and the upstream price pressures, the board will continue to pay close attention to both the evolution of labour costs and the price-setting behaviour of firms in the period ahead.
Board remains resolute in its determination to return inflation to target.
About RBA rate decision
RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
