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MNI INTERVIEW: Q2 CPI Could Force RBA To Hike In August

The RBA board faces a challenging decision next month, a former principal advisor at Australia's Treasury tells MNI.

The Reserve Bank of Australia could be forced to hike at its upcoming Aug 5-6 meeting should Q2 quarterly CPI print at 1% q/q or above, a former principal advisor at the Treasury told MNI, noting further hikes could occur later in the year.

Warren Hogan, managing director at EQ Economics, said the recent jump in consumer confidence – likely driven by stage-three tax cuts – and the strong labour market would also add pressure on the board to lift rates next month.

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The Reserve Bank of Australia could be forced to hike at its upcoming Aug 5-6 meeting should Q2 quarterly CPI print at 1% q/q or above, a former principal advisor at the Treasury told MNI, noting further hikes could occur later in the year.

Warren Hogan, managing director at EQ Economics, said the recent jump in consumer confidence – likely driven by stage-three tax cuts – and the strong labour market would also add pressure on the board to lift rates next month.

Keep reading...Show less