Reserve Bank of Australia Expected to Make Another Oversized Rate Hike in October
Economic experts are expecting the Reserve Bank of Australia (RBA) to maintain its aggressive interest rate policy with another oversized rate hike in October as troubling global economic conditions remain.
The RBA said it would opt between a 0.25 and 0.5 percent hike at the next board meeting on Oct. 5 and that it would consider the global economic outlook and consumer spending habits when making the decision.
Royal Bank of Canada economist Su-Lin Ong predicted that the October rate hike would be a 0.5 percent increase, citing the hawkish stance of central banks around the world.
“With the Australian dollar falling further as global rate expectations reset, adding to domestic inflationary pressures, the RBA remains under pressure to also deliver an outsized rate hike,” Ong said….