Commerzbank economists analyze the outlook for the Australian market ahead of next week’s inflation data.
Inflation data will likely be what matters now for the RBA
What matters now for the Reserve Bank of Australia (RBA) will likely be third quarter inflation data, due out next week. In particular, the central bank’s new governor, Michele Bullock, has expressed concern about the possibility of inflation rising again.
If next week’s inflation data confirms Bullock’s concerns, a further rate hike in early November is very possible and certainly necessary at that time from the market’s point of view. If the RBA did not act despite these events, the AUD would likely be massively punished by the market.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
