📰 What Happened
The chance of another Australian interest rate rise next month has grown. Reserve Bank deputy governor Andrew Hauser said the inflation outlook is 'materially worse' and that the bank faces hard choices. Markets now put the odds of a rise on 3 November at 45%, up from 30%. That would be the fifth increase this year and would lift the cash rate to 4.85%, its highest since the global financial crisis.
🔍 The Backstory
Inflation was 4% in the year to August, well above the bank's 2.5% target. Hauser said businesses are starting to treat 3.5% inflation as normal, which is hard to undo. Oil prices are also about a third higher than the bank expected. At the same time, the economy is slowing. Unemployment reached a five-year high of 4.7% last month. Some economists say next week's inflation figures will decide the November call.
🎯 Why It Matters
Another hike would raise repayments for millions of mortgage holders. It also shows how a war-driven oil price can reach Australian households.

The chance of another Australian interest rate rise next month has grown. Reserve Bank deputy governor Andrew Hauser said the inflation outlook is 'materially worse' and that the bank faces hard choices. Markets now put the odds of a rise on 3 November at 45%, up from 30%. That would be the fifth increase this year and would lift the cash rate to 4.85%, its highest since the global financial crisis.

Inflation was 4% in the year to August, well above the bank's 2.5% target. Hauser said businesses are starting to treat 3.5% inflation as normal, which is hard to undo. Oil prices are also about a third higher than the bank expected. At the same time, the economy is slowing. Unemployment reached a five-year high of 4.7% last month. Some economists say next week's inflation figures will decide the November call.

Another hike would raise repayments for millions of mortgage holders. It also shows how a war-driven oil price can reach Australian households.

📰 Source: News Source
theguardian.com ↗
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