Back-to-back rate hikes can’t be ruled out, says CBA chief economist | The Business | ABC NEWS
Commonwealth Bank’s base case is that the RBA will hike in November, but its chief economist says the central bank could move higher in September. Luke Yeaman says back-to-back hikes at both meetings can’t be ruled out.
“At this stage, we think one more interest rate hike should be enough, especially with the housing market coming off so sharply to help slow consumption, slow activity in the economy, and very slowly bring inflation back to target,” he says.
Mr Yeaman’s comments came one day after RBA Deputy Governor Andrew Hauser told the ABC taming inflation is the Australian central bank’s number one problem.
The chief economist, and former Treasury deputy secretary, says another problem making the RBA’s job more difficult is the persistently high oil price, with the Middle East conflict driving Brent crude near $US100 a barrel on Wednesday.
Mr Yeaman says if there’s a bigger escalation and oil prices rise beyond $US100 a barrel, it will feed into prices back through the economy in coming months and into 2027.
“That would be the thing that could push the RBA to have to go harder,” he says.
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