Need to stay on course with inflationThere is still a risk that inflation takes too long to return to targetRecent volatility is mostly markets adjusting to financial news/developmentsInterest rates might need to stay higher for longerBut there is also a risk of the other side of the outcome materialisingThere is a high degree of uncertainty stillA near-term reduction in the cash rate does not align with our current thinking
She definitely does not sound like someone who is close to or even leaning towards cutting interest rates. I reckon we might see some adjustments to those expecting a move in November. But again, it will very much be data dependent. That said, all else being equal, that might be off the table as long as the status quo remains.
This article was written by Justin Low at www.forexlive.com.
