RBA's Hauser: Inflation outlook appears less favourable than forecast and marginally above expectations

A worse-than-forecast inflation outlook, slightly above expectations, was highlighted by Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser on Wednesday. With forecasts still being finalised, Hauser said he remained uncertain about the board’s decisions.

What Were Hauser’s Main Observations?

Forecasts are still being finalised; the board’s decision remains uncertain.

The outlook for inflation looks worse than forecast and slightly above expectations.

Cost pressures rank as companies’ leading concern.

Elevated inflation has persisted for a prolonged period.

Expectations for inflation must remain anchored to the target.

Some easing has been observed in employment data and housing.

Although monetary policy is working, the inflation outlook is worsening.

Responding to supply shocks is necessary to keep inflation expectations anchored.

The quarterly trimmed mean is likely to come in above expectations.

Current inflation cannot be the target, though it remains relevant.

Constraints on capacity are more severe than anticipated.

The September labour report fell somewhat short of expectations.

Despite low unemployment, the labour market is easing.

How Is AUD/USD Trading?

Gains in AUD/USD remain intact at the time of writing, with the pair trading near 0.7009, up 0.45% on the day.