- If data suggests inflation not slowing, that will be considered at February board meeting
- Board wants to give signal that risks have tilted to the upside
The RBA has officially turned hawkish today and opened the door for rate hikes. That is of course conditional to the data with Governor Bullock stressing the January quarterly inflation report.
Reading between the lines, it feels like they could deliver a rate hike at the February meeting already if inflation surprises to the upside again. Of course, the bigger the surprise the stronger the chances for an earlier rate hike.
