％Australia Government Bond 10Y
AU-10Y
▲ PositiveMonetaryrelevance
Rate hike expectations push bond yields up.
Impact on stocks 1
Others
Australian central bank deputy governor to discuss rate hike at this month's board meeting
Macro
Reserve Bank of Australia Deputy Governor Hauser said on Thursday that the case for a rate hike is expected to be discussed at the next board meeting on September 28-29, adding that inflation remains elevated and risks are tilted to the upside. Hauser told the Australian Broadcasting Corporation that his concerns about inflation were heightened after seeing the impact of data centers on the economy during a visit to the United States. He noted that the key question for policymakers is whether the three rate hikes implemented this year are sufficient to curb inflation, or whether further measures are needed. With inflation in July exceeding market expectations, markets are now pricing in a 68% probability that the policy rate will be raised by 25 basis points to 4.60% on the 29th of this month. The probability of rates reaching 4.85% by 2027 is 60%. Hauser said that while the stage has not been reached where significant rate hikes are needed to bring inflation back to the central bank's target of 2-3%, a prolonged period above target could require a stronger policy response.
Rate hike expectations push bond yields up.