McKibbin (via Bloomberg report, gated)
- “The inflation numbers in Australia, although much lower than the rest of the world, are still towards the top end” of the RBA’s 2-3% target
- “And the oil price shocks will obviously put upward pressure on that.”
- “On top of the Covid-19 shocks and the worries of monetary tightening in major economies, we have now got an inflationary shock coming from higher oil prices out of Russia and an increase in geopolitical risks,” he said. “It may delay tightening of monetary policy, I’d think, particularly from the Fed.”
- Once clarity emerges on Ukraine, McKibbin sees the tightening cycle in Australia pushing the cash rate higher than markets are currently predicting.
Earlier on the RBA:
Westpac says the Ukraine tragedy is unlikely to impact the RBA timetable
