Steady hand: Bullock addresses the media in Sydney. The central bank governor has expressed a willingness to be patient as she seeks to slow inflation without choking off economic growth. — Bloomberg
SYDNEY: Australia’s central bank may have no choice but to resume raising interest rates this year if inflation fails to slow, according to money markets, setting it up as a potential outlier to a post-pandemic global tightening cycle that has all-but ended.Aside from Japan, which only began hiking this year, Australia is the only developed economy where money markets are still pricing some chance of a rate increase.
The reasons include a cash rate of 4.35% that’s lower than peers and inflation that’s proving stickier than the Reserve Bank of Australia (RBA) had anticipated.
