Inflation STILL skyrocketing at 7 percent after 10 consecutive rate hikes in grim development as RBA considers another rate hike
- Inflation up to March by 7 percent
- Westpac predicts May 2 rate increase
Australian inflation remains high at 7%, despite ten consecutive rate hikes by the Reserve Bank.
The latest Consumer Price Index figures show that inflation is stubbornly above the Reserve Bank of Australia’s target of 2 to 3 percent.
In the year to March, it was up seven percent.
This was a moderation from the 32-year high of 7.8 percent in December.
But despite that, Westpac bank expects the RBA to raise rates again on May 2 to a new 11-year high of 3.85 percent, up a quarter of a percentage point from 3.6 percent.
Sean Callow, a senior currency strategist, said renewed wage growth could lead to another rate hike of 25 basis points next week, which would be the 11th since May 2022.
The minutes of the April meeting showed that the board was considering a 25 basis point step before opting for a pause and that it is once again concerned both about the pace of population growth from immigration and about “a greater risk of greater wage increases.” in parts of the economy, including the public sector, later in the year,” he said.
Australian inflation remains high at 7 percent, despite 10 consecutive rate hikes by the Reserve Bank.