Market Flux Event
RBA Deputy Governor Warns Inflation Outlook Is Materially Worse Than Forecast
Read this in the Market Flux appReserve Bank of Australia Deputy Governor Andrew Hauser said the country's inflation outlook is "materially worse" than previously forecast, adding that third-quarter inflation data due shortly are likely to confirm that deteriorating view. Hauser acknowledged that monetary policy is working but stressed that inflation has remained elevated for an extended period and that the outlook has continued to slide despite the RBA's efforts.
Hauser flagged a mixed set of economic signals complicating the RBA's path. September's labor report came in somewhat weaker than expected, and capacity constraints are proving more intense than anticipated, even as the unemployment rate remains relatively low. He emphasized that inflation expectations must stay anchored to the RBA's target and that the central bank must respond to supply shocks to preserve that anchoring.
The RBA's warning lands against a broader global inflation backdrop. In the United States, the September inflation rate rose on the back of higher gasoline and energy prices tied to the Iran war, further squeezing household budgets and raising the prospect of Federal Reserve rate increases. Separately, investment strategists have pointed to real assets and global infrastructure as particularly resilient inflation hedges given their inelastic demand characteristics.
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Sources
- Etf TrendsInflation Calls for Real Assets & Global Infrastructure
- FinancialjuiceRBA's Hauser: inflation outlook appears worse than forecast, slightly above expectations
- CNBCThe inflation rate increased in September on the back of higher gasoline and energy prices amid the Iran war, further squeezing households’ budgets and perhaps putting pressure on the Federal Reserve to raise interest rates, economists said. Read more:
- PiQMarketsHow Inflation Data Moves Forex, Indices, and Bonds
- LiveSquawkAustralia Central Banker Says Policy Working, Inflation Outlook Worse – RTRS
- FirstSquawkRBA’S HAUSER SAYS THE SEPTEMBER LABOR REPORT WAS SOMEWHAT WEAKER THAN EXPECTED AND THAT CAPACITY CONSTRAINTS ARE MORE INTENSE THAN ANTICIPATED, ADDING THAT YOU CANNOT AIM FOR CURRENT INFLATION BUT IT STILL MATTERS
- Capital_HungryI would save this as soon as you see it because I am going to delete it as my toilet throne time prophetic market visions are usually my best generational runs lmfao Had this vision on the toilet while thinking about Gold, war, energy prices, FOMC next week, hot inflation expectations, USD Yields upside pressure, last CPI lows false support, Bearish impulsive leg, print LL into same pivot point 4000s, Oil hits high risk threshold price; damage control of bigger relief like extended ceasefire or blockade temporarily opened to allow negotiations, Oil sell off, Yields flush out, Gold rally wave.
- WsjAustralia’s Inflation Outlook Materially Worse, RBA Says
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- InvestingAustralian central banker says inflation outlook worse, unsure about November rate hike
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- ETMarketsThe US dollar remained under pressure on Wednesday after slipping to a three-week low in the previous session, as a dip in Treasury yields and crude oil prices reduced the currency's appeal.
- BusinessGold held a decline as conflicting signals on efforts to end the Iran war clouded the outlook for inflation and the Federal Reserve’s path for interest rates
- RedboxWireSingapore Dollar Eases Lower as Higher Treasury Yields Offer Support to the U.S. Dollar - WSJ