Australia's Q3 Inflation Accelerates, Crushing Rate-Cut Hopes
Australian consumer prices jumped by the most in 2-1/2 years in the September quarter as electricity and travel costs climbed, while a shockingly large increase in the core inflation reading seemed to rule out any imminent rate cuts.
Investors gave up any remaining hopes for a rate cut from the Reserve Bank of Australia next week, which is now just 8% priced in, down from 40% before the data. The chance of a cut in December is now seen as less than 25%.
Rates are seen bottoming at 3.35% by mid-2026 from the current 3.6%, implying just one last cut in the easing cycle...
To Read Full Story Login Below.
Submit comment or question
Note: All comments are displayed with user's screen name. If screen name is not present, user's full name will be used. Please go to My Account to update your screen name.
Comment Policy: Urner Barry has made the comment feature available to encourage further discussion of our news stories. Defamatory or offensive comments, or comments deemed not relevant to the story will be removed, and if necessary, Urner Barry may restrict the right of individual subscribers to offer comments. In all cases, comments represent opinions of the poster only, and do not represent fact, news, opinions or estimates put forward by Urner Barry.
Email Address is required. Password is required.