HSBC: Australia's Q3 Inflation Data Significantly Exceeds Expectations, Dramatically Alters Official Rate Outlook
Deep News
Oct 30
Paul Bloxham, Chief Economist for HSBC in Australia, stated that the country's third-quarter inflation data came in substantially higher than expected, completely reshaping the outlook for official interest rates.
He noted that markets had previously anticipated core inflation to trend toward the midpoint of the Reserve Bank of Australia's (RBA) 2%-3% target range. However, core inflation has instead continued to rise. Bloxham added that disinflationary momentum has entirely stalled, leaving the RBA no room to further cut the cash rate.
According to Bloxham, the next likely move in Australian interest rates could be a hike in early 2027.
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