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PT Solid Gold Berjangka | Australia’s Faster-Than-Expected Inflation Keeps Hike in Play

01:33 25 October in Economy, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP
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Solid Gold Berjangka | he article provides information on Australia’s inflation rate, which came in higher than expected in the third quarter of the year, bolstering the case for the Reserve Bank of Australia (RBA) to raise interest rates in the upcoming month. Here are the key points from the article:

  1. Inflation Rate: Australia’s consumer price index (CPI) advanced by 5.4% in the third quarter compared to the same period the previous year. This figure was higher than economists’ estimates of 5.3%.
  2. Inflation Above Target: The inflation rate is well above the RBA’s target range of 2-3%, indicating that consumer prices in Australia remain elevated.
  3. New RBA Governor: The new Governor of the Reserve Bank of Australia, Michele Bullock, has emphasized the importance of data in making decisions. This signals that the RBA is closely monitoring economic indicators, including inflation, to guide its monetary policy.
  4. Market Expectations: The higher-than-expected inflation figure has increased expectations that the RBA will raise interest rates at its November 7 policy meeting. This expectation led to a rise in the Australian currency and the three-year government bond yield.
  5. RBA’s Inflation Concerns: Governor Bullock has expressed concerns about inflation, especially regarding price spikes resulting from global economic and geopolitical events. This has put more emphasis on the latest inflation report to determine the RBA’s course of action.
  6. Market Sentiment: Money market bets now imply a more than 70% chance of a rate hike next month, up from about 40% before the release of the inflation data. However, economists have mixed opinions, with some suggesting that rates may have already peaked, and the next move could be a rate cut.
  7. Global Context: The article also mentions that rising inflation is not unique to Australia, as US producer prices have also increased more than expected, and core inflation (excluding shelter and energy services) is on the rise. However, the US Federal Reserve appears inclined to hold rates steady for now.
  8. RBA’s Cautious Approach: The RBA has been more cautious in raising interest rates compared to the US Federal Reserve. While the RBA has increased rates by 4 percentage points, the US has increased rates by 5.25 points.
  9. Services Inflation: The RBA has highlighted concerns about services inflation as a specific area of worry, indicating that it is monitoring inflation in various sectors of the economy.

In summary, the higher-than-expected inflation rate in Australia has increased the likelihood of an interest rate hike by the RBA in the near future. This decision will depend on the central bank’s data-dependent approach and how it views the inflationary pressures in the country.

SOLID GOLD BERJANGKA, PT SGB, SOLID GROUP

CPI Ekonomi Australia CPI Australia Infation