Inflation Risks Keep RBA Hawkish, Capital Economics Says
Capital Economics says inflation risks support the RBA’s hawkish stance, while a weaker housing market may limit further rate increases in coming months.
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what happened
Inflation concerns are keeping the Reserve Bank of Australia’s monetary-policy stance hawkish, according to commentary from Abhijit Surya, Capital Economics’ senior APAC economist, cited by Newsmetry API.
Minutes from the RBA’s September meeting confirmed that the rate increase was driven by the Board’s assessment that some previously identified upside inflation risks were beginning to materialize. The Board also briefly considered keeping rates unchanged, pointing to a weakening housing market and the possibility that earlier tightening could hurt economic activity more than expected.
Surya said these considerations will probably prevent the RBA from raising rates again in the coming months.
why it matters
For markets, the message points to a balance between persistent inflation pressure and constraints on additional policy tightening. Expectations for the RBA’s next moves may affect the Australian dollar and Australian bond yields.
instruments
sources
- Inflation Worries Keep RBA in Hawkish Monetary Policy Stance — Market Talk — Newsmetry API, 13 October 2026 at 01:55 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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