Glynn’s Take: RBA Policy Decision Seems Too Tough to Call With Cautious Bullock at the Helm
null By James GlynnNov. 2, 2023 2:16 am ET|WSJ ProMichele Bullock, governor of the Reserve Bank of Australia (RBA), speaks during the Commonwealth Bank of Australia Global Markets Conference in Sydney. Photo: Lisa Maree Williams/Bloomberg NewsSYDNEY—The Reserve Bank of Australia’s decision next week on whether to resume raising interest rates in response to higher-than-expected third-quarter inflation is too close to call.That’s because the RBA’s tightening cycle is already well advanced, with a lot of the pain of the prior run of rate hikes yet to be felt by companies and home buyers. The threat of a spike in mortgage defaults and business failures will grow sharply if loan repayment costs rise much further.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8Stay on top of inflation and monetary policy.News and commentary to help you monitor and analyze shifts in the world economy and the policies of central banks.SIGN INSUBSCRIBE
SYDNEY—The Reserve Bank of Australia’s decision next week on whether to resume raising interest rates in response to higher-than-expected third-quarter inflation is too close to call.
That’s because the RBA’s tightening cycle is already well advanced, with a lot of the pain of the prior run of rate hikes yet to be felt by companies and home buyers. The threat of a spike in mortgage defaults and business failures will grow sharply if loan repayment costs rise much further.
Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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