Australia's central bank: chief economist says inflation fight is not over
After four rate hikes this year the job is "not quite yet" done, says Sarah Hunter. Markets expect another increase in November.
Symbolic image · Photo: Danausi / Wikimedia Commons, Public domain (cropped and resized)
The Reserve Bank of Australia has not yet tamed inflation, according to its chief economist Sarah Hunter. Asked whether the hikes so far had been enough, she said in an interview with Nine's "60 Minutes" aired on Sunday: "Unfortunately, not quite yet." The RBA has raised its cash rate four times this year, to 4.6%, the highest in 15 years.
Government spending is "definitely part of the picture" in the imbalance between demand and supply, Hunter said, adding that it is not the central bank's place to tell governments how much to spend. Markets are pricing a roughly 61% chance of another hike at the November 3 meeting, broadcaster ABC reported.
On Wednesday the statistics bureau publishes third-quarter inflation data. Annual inflation is expected to hold at 3.9%, with the RBA's preferred trimmed mean measure seen at 3.6%.