US EditionCrucial Inflation Data to Determine Interest Rate Call
Higher household spending and end of electricity rebates could push inflation above the 3% target, prompting a February rate increase, economists say.
- On Wednesday, the Reserve Bank of Australia's first 2026 interest rate decision will hinge on a single figure in the Australian Bureau of Statistics inflation print ahead of its February 3 meeting.
- Hotter household spending and firm jobs numbers have increased price pressures, with Westpac forecasting CPI at 3.7 per cent after the end of a $75 electricity rebate, Westpac Bank says.
- Markets have priced about a 60 per cent chance of a February hike, with NAB and others tipping 0.9 per cent for the December quarter, above the RBA's forecast.
- Households could feel immediate pain if the print surprises, since a stronger-than-expected print would push annual core inflation to 3.3 per cent and the dollar rose above 69 US cents on Tuesday.
- Looking beyond the next meeting, the RBA aims to return core inflation to 2.5 per cent, and Luci Ellis says `An outcome at this level or lower should be enough to stay the RBA's hand, at least for now`.
12 Articles
12 Articles
Markets bet on February RBA interest rate rise after hot inflation
SBS Finance Editor Ricardo Gonçalves takes a deep dive into today's higher than expected inflation figures to find out what it means for interest rates and for the sharemarkets with Stephen Wu from UBS, James Gerrish from Market Partners and Stephen Miller from GSFM Funds Management.
RBA to Hike in February on Second Uncomfortably High Quarterly Inflation Read - ActionForex
December quarter inflation had the casting vote and voted ‘Yes, hike’. RBA to raise cash rate at February meeting to 3.85%. Further rate hikes possible but ‘one-and-done’ as a base case. When the economy is close to full employment and full capacity utilisation, it is hard to know which side of the line it is […] The post RBA to Hike in February on Second Uncomfortably High Quarterly Inflation Read appeared first on ActionForex.
ASX Dips Amid Rate Hike Concerns
The Australian Securities Exchange (ASX) experienced a downturn on Wednesday, with the index down 0.28 per cent, or 25.3 points, by 1pm AEDT. This dip occurred as market expectations solidified around a potential interest rate hike at the Reserve Bank of Australia’s (RBA) upcoming meeting next week. The increased anticipation follows the release of recent inflation data. Consumer-focused sectors showed notable weakness. The consumer discretionar…
Coverage Details
Bias Distribution
- 40% of the sources lean Left, 40% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
