As RBA worries about increased inflation risk for longer, driving up interest rates in November
The statement read as follows: -
- Our priority is to put inflation back on target
- We decided a rate hike in November would provide more guarantees on inflation
- The risk of inflation staying higher has increased for longer
- If more emphasis is needed this will depend on data and risk balance
- Inflation is steadier than expected, and the economy is slightly stronger than expected
- The potential for more upside surprises for inflation
- Council recognizes many households face painful budget strain
- RBA raises inflation and GDP growth forecast, slashes unemployment and wages outlook
