RBA governor Michele Bullock said on Tuesday that Australia’s jobs market was still putting upwards pressure on inflation as the four major banks tipped a rise in interest rates next week.
“Between 4.5% and 5% will probably take enough heat out of the labour market that eases pressure on inflation,” Bullock told a Committee for Economic Development of Australia (CEDA) event in Sydney (ABC).
Bullock also said that inflation from the global energy price shock should not be allowed to translate into domestic price increases that “might perpetuate ongoing inflation” (ABC).
Commonwealth Bank and ANZ joined Westpac and NAB on Monday in predicting an interest rate rise next week, instead of at the next meeting in November. ANZ is tipping a rate rise after both meetings (AFR).
The RBA governor also said at the CEDA event that AI could be a bubble and there was no evidence it is making the economy more efficient (The Guardian).
“Some people think it’s a bubble, some people don’t. I don’t have a particular view one way or the other, but it’s a risk that I think we’re watching” (The Guardian).
Read more: The ‘double whammy’ of rising fuel costs and interest rates (The Saturday Paper)