Bullock was hawkish earlier on the week:
RBA leaves cash rate unchanged at 4.35%, as expectedRBA governor Bullock: Inflation progress has been slow for a year nowRBA governor Bullock: A rate cut is not on the agenda in the near-termThe response to the RBA meeting yesterday is a 25bp rate cut priced for December 2024
And, same again today:
RBA Governor Bullock: Don’t expect to be back in 2-3% target range until end of 2025“The most recent inflation reading shows that while inflation is lower than it was a year ago, it is still too high. Inflation in many goods prices has declined but inflation in services prices is high and proving very sticky.””I know this (raising rates) is not what people want to hear. But the alternative of persistently high inflation is worse. It hurts everyone,” “We don’t expect to be back in the 2–3% target range until the end of 2025 – over a year away. This is why the Board explicitly considered whether another interest rate rise was required to ensure inflation continues to decline.”
AUD/USD has risen on the session,. adding a little more:
This article was written by Eamonn Sheridan at www.forexlive.com.
