The Reserve Bank of Australia (RBA) senior official expressed concerns about the persistently high inflation rate, stating that the process of bringing it back to target is expected to be prolonged. RBA's Kohler highlighted that domestically sourced inflation has been widespread and slow to decline, while labor market conditions are easing but remain tight. Additionally, wages growth has stabilized, and there is a risk that current high inflation may impact inflation expectations. On the other hand, Goldman Sachs anticipates inflation in Australia and New Zealand to decrease to 'a bit below' 3% by late-2024, aligning with the targets of both central banks and potentially leading to interest rate cuts.
Goldman Sachs expects inflation in Australia and New Zealand to ease to “a bit below” 3% by late-2024, within the targets of both central banks and paving the way for reductions in interest rates. https://t.co/foJowkSsbK
Goldman Sachs expects inflation in Australia and New Zealand to ease to “a bit below” 3% by late-2024, within the targets of both central banks and paving the way for reductions in interest rates. https://t.co/PbO4q7MR8k
Goldman Sachs expects inflation in Australia and New Zealand to ease to “a bit below” 3% by late-2024, within the targets of both central banks and paving the way for reductions in interest rates. https://t.co/35HaIqYzhU
🔴 RBA'S KOHLER: LABOUR MARKET CONDITIONS ARE EASING BUT ARE STILL TIGHT.
🔴 RBA'S KOHLER: ENCOURAGINGLY, MEASURES OF MEDIUM-TERM INFLATION EXPECTATIONS ARE CONSISTENT WITH THE TARGET.
🔴 RBA'S KOHLER: A KEY RISK IS THE POSSIBILITY THAT HIGH INFLATION TODAY FEEDS INTO INFLATION EXPECTATIONS.
🔴 RBA'S KOHLER: WAGES GROWTH HAS PICKED UP, BUT IT NOW APPEARS TO HAVE BROADLY STABILISED.
🔴 RBA'S KOHLER: STILL-STRONG LEVELS OF DEMAND HAVE ALLOWED BUSINESSES TO PASS ON COST INCREASES.
🔴 RBA'S KOHLER: DOMESTICALLY SOURCED INFLATION HAS BEEN WIDESPREAD AND SLOW TO DECLINE.
🔴 RBA'S KOHLER: BRINGING INFLATION BACK TO TARGET IS LIKELY TO BE MORE DRAWN OUT THAN PREVIOUSLY THOUGHT.
Australia’s inflation rate is “still too high” and the next stage in bringing it back down to target is likely to be more drawn out than the first phase, a senior RBA said https://t.co/jSMWKuau6g
Australia’s inflation rate is “still too high” and the next stage in bringing it back down to target is likely to be more drawn out than the first phase, a senior RBA said https://t.co/iZqke2nWN5