Central Banks
RBA’s Hauser Says Rate Pause Would Have Seen CPI Undershoot
- Deputy governor expresses caution on follow-up rate cuts
- Job growth shown today ‘really quite striking,’ Hauser says
Australia’s central bank assessed that keeping interest rates unchanged this year would have resulted in core inflation going below the 2.5% midpoint of its target, Deputy Governor Andrew Hauser said.
In updated economic forecasts released at the same time as Tuesday’s policy announcement, the Reserve Bank estimated that trimmed mean inflation would fall to 2.7% from mid-2025 and remain there through mid-2027. That estimate was based on market pricing for three rate cuts this year.