Free Trial

Remains Above Support At The 20-Day EMA


Opening calls


EU Cash opening calls

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

MNI BRIEF: RBA Rate Hikes Subdue Aussie Inflation Expectations

Melbourne Institute survey suggests consumer pay and price expectations weighed by RBA hikes.

MNI (Perth)

Australian consumer inflation expectations continue to moderate in the wake of the Reserve Bank of Australia's 6 consecutive rate hikes, according to the Melbourne Institute survey released Thursday, with the outlooks for both pay and prices over the coming year stabilising. The Survey of Consumer Inflationary and Wage Expectations showed the expected inflation rate steady at 5.4% in October, while total pay was expected to grow by 0.9% over the next 12 months. Inflation expectations peaked at 6.7% in June.

The RBA said medium-term inflation expectations "remain well anchored" in its Oct 4 statement, while delivering a smaller-than-expected 25bp hike to 2.6% (see MNI STATE OF PLAY: RBA Taps Brakes, Sees Slower Pace Of Hikes). While the RBA's Monetary Policy Statement forecast inflation of 7.75% by the end of the year, there have been signs inflation pressures may be easing. The monthly Consumer Price Index indicator eased to 6.8% in August, down from 7% in July, according to the Australian Bureau of Statistics.

September quarter CPI is released on October 26 -- along with the first in step release of the new monthly series -- a week before the RBA's November 1 meeting where it is expected to raise rates 25bp. Further insight into the RBA's thinking will come from the release of October's board minutes and a speech by Deputy Governor Michele Bullock on October 18.

Robert covers RBA and RBNZ policy and the economy for MNI in Australia.
Robert covers RBA and RBNZ policy and the economy for MNI in Australia.

To read the full story

Why Subscribe to

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.