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Australia's central bank chief warns inflation risks materialising
Markets expect a 25-basis-point hike as Bullock warns imported energy costs and AI-driven demand are keeping inflation pressures elevated.
- On Friday, Reserve Bank of Australia Governor Michele Bullock warned that upside inflation risks—the Middle East conflict, higher oil prices, an AI investment boom, and extreme weather—are materializing ahead of the board's September meeting.
- The prolonged Middle East conflict continues to inflate energy prices while the AI boom drives labor demand and tech costs, complicating the bank's path to return inflation to its 2–3 percent target.
- Following Bullock's testimony, bond futures priced in an 82 per cent chance of a 0.25 percentage point rate hike this month, with the RBA currently holding the cash rate at 4.35 per cent.
- Economists at UBS now project the cash rate will peak at 4.85 per cent, as markets sharply repriced the likelihood of an interest rate hike at the board's September 28–29 meeting.
- A hike would push the cash rate to a 15-year high of 4.6 per cent, with the RBA board meeting next week one day before the Australian Bureau of Statistics releases August inflation data.
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UK rate rise bets grow as Bank of England warns on energy prices
The Bank of England held its key interest rate at 3.75 per cent on Thursday, but signalled a more cautious approach to monetary policy as higher energy prices push inflation higher. The central bank’s next rate-setting meeting is scheduled for November 5, with Barclays expecting a 25-basis-point increase as the continuing Middle East conflict raises […]
·Nicosia, Cyprus
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Coverage Details
Total News Sources48
Leaning Left7Leaning Right10Center8Last UpdatedBias Distribution40% Right
Bias Distribution
- 40% of the sources lean Right
40% Right
L 28%
C 32%
R 40%
Factuality
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