The Bank of Australia has signaled a growing willingness to raise interest rates soon, removing the phrase “preparing for patience” from its policy assessments today as it tightened its policy.
At the April meeting, the Bank of Australia kept the interest rate at 0.10% as expected, stressing to the markets that it will carefully consider the next signs of rising wages and inflation to shape its policy.
“In the coming months, significant additional data will be available on both inflation and labor cost developments,” said central bank governor Philip Lowe.
“The board will evaluate this and other incoming information as it sets out its policy to support full-time employment in Australia and inflation to meet the target,” he added.
If the Reserve Bank of Australia raises interest rates in the coming months, it will be the first time since 2010 that it will bring the central bank “on the same line” with its global counterparts, many of whom are already aggressively tightening their policy on to tackle inflation.
The data on inflation in the first quarter, which will be published at the end of April, will be crucial for shaping the policy of the Bank of Australia.
Source: Capital
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