RBA deputy governor Andrew Hauser said the inflation outlook has deteriorated more than the bank projected in August, and doubts about returning inflation to target could warrant another rate hike. A rise would be the fifth this year, lifting the cash rate to 4.85 per cent, its highest since 2008, and Hauser called the trade-off between tackling inflation and weaker activity “hard choices”. He warned that if people expect inflation to stay above target, that would be “the central banker's nightmare”, even though unemployment, at a five-year high in September, remains comparatively low. After his remarks, market pricing for a November hike rose to 57 per cent from below 20 per cent last week, ahead of September-quarter inflation data on October 28. ANZ and Westpac forecast a November increase, while NAB and CBA judge the hiking cycle finished.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Nightmare : RBA inflation warning puts another hike in play
Read the original on theadviser.com.au ↗
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RBAinterest ratesinflationAustralia
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Related tickers and likely impact
AUD/USD
▲ Likely positiveRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/21/2026 | 0.70288 |
| Change that session | +0.35% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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