Australia's Consumer Price Index (CPI) reaccelerated to 4% in May, increasing the probability that the Reserve Bank of Australia (RBA) may resume interest rate hikes this year. RBA Deputy Governor Hauser acknowledged the uptick in CPI but noted that the outlook remains uncertain. Hauser emphasized that it may be taking longer for current policies to impact the economy and cautioned against setting policy based on a single data point. He mentioned that a whole series of data will be reviewed before the next policy meeting.
RBA's Hauser: It would be a bad mistake to set policy on the basis of one number https://t.co/IZTAk64AXY
RBA'S HAUSER: IT MAY BE TAKING A LITTLE LONGER FOR POLICY TO FEED THROUGH.
RBA'S HAUSER: IT WOULD BE BAD MISTAKE TO SET POLICY ON ONE NUMBER, WE WONT MAKE IT.
RBA'S HAUSER: A WHOLE SERIES OF DATA IS COMING BETWEEN NOW AND THE NEXT POLICY MEETING.
RBA'S HAUSER: OUTLOOK REMAINS UNCERTAIN, THAT HAS NOT CHANGED.
⚠️ RBA'S HAUSER: **WHOLE SERIES OF DATA COMING BETWEEN NOW AND NEXT POLICY MEETING **WOULD BE BAD MISTAKE TO SET POLICY ON ONE NUMBER, WE WONT MAKE IT
⚠️ RESERVE BANK OF AUSTRALIA DEPUTY GOV HAUSER: CPI NUMBER DID PICK UP A BIT IN MAY **RBA'S HAUSER: OUTLOOK REMAINS UNCERTAIN, THAT HAS NOT CHANGED **RBA'S HAUSER: MAY BE TAKING LITTLE LONGER FOR POLICY TO FEED THROUGH **RBA'S HAUSER: LABOUR MARKET HAS BEEN PERFORMING…
Australia’s CPI reaccelerated to 4% in May and this new data has increased the probability that the RBA resumes hiking sometime this year #MacroEdge