Reserve Bank of Australia Governor Bullock and Assistant Governor (Financial Markets) Christopher Kent are giving testimony in parliament this morning Sydney time
- Bullock says services inflation remains a little sticky
- Labour market still a little bit tight, could be close to balance
- Labour market in a good place
- Consumption is beginning to recover
- Q2 inflation was a little higher than expectations, but moving in right direction
- Must be cautious as the monthly CPI data are volatile
- Dwelling costs and services are a little higher than expected
- Risks are relatively balanced on inflation
- We remain data driven on policy
- Forward indicators of labour market have been broadly stable
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Background to this .... at its September meeting, the Bank held its cash rate steady at 3.60%, following three cuts earlier in 2025. The decision, while broadly expected, carried a notably “hawkish hold” tone, with the bank flagging risks that inflation in the September quarter might come in stronger than expected. As a result, market bets on a November cut weakened significantly.
- market pricing implies around a 50% chance of a quarter-point reduction in the cash rate at the RBA's next meeting in November
- close to 60% chance of a cut in December
