RBA hints at more rate hikes flagging unravelling public trust concerns

Add as a preferred source on GoogleHopes of a November rate hold have been thrown into doubt after the RBA warned it is “facing hard choices” and losing its grip on public trust.Speaking in Sydney on Wednesday, deputy governor Andrew Hauser said the bank’s most recent August forecasts are significantly undershooting the fast-moving and challenged economic environment.“We didn’t raise rates in June or August because we wanted to take space to review the impact of our decisions in the first part of the year,” he said. “But perhaps it sounds naïve now, the possibility of a resolution in the Middle East crisis.”Interest rates were increased for a fourth time in September to a 15-year high of 4.6% in a further attempt to preserve the bank’s timeline for inflation returning to target.While markets are largely expecting the bank will hold off on more tightening in November, Mr Hauser warned risks are escalating quickly.“A few things are clear,” he warned. “The inflation outlook looks materially worse than we projected in August, and we have the same three upside risks.Reserve Bank of Australia deputy governor Andrew Hauser says inflation risks have escalated since August. Picture: NewsWir...