Bank chief to be grilled with rate cuts up in the air
The Boss of the Central Bank of Australia will be in the light of spotlight on the possibility of interruptions of future interest rates as inflation continues to cool.
Reserve Bank Governor Michele Bullock will lead a parliamentary grill for the first time since the Federal elections in May on Monday and the bank will restart the cutting rates in February.
The questions about productivity, work figures, falling inflation and card payment additional fees are on the table.
RBA is expected to make a hot issue while preparing to make another ratio decision at the end of September.
Australia’s August unemployment figures, published on Thursday, showed that the unemployment figures remained constant at 4.2 percent, but the 5400 surprise drop in jobs may support the case for more deduction.
Inflation data for August, which will be published on Wednesday, are also expected to show a small decrease in the underlying inflation.
The figure at 2.7 percent – the upper end of the target range of the Reserve Bank – but a small drop may not be enough to force the board’s hand in September.
As a result, the markets predicted that the bank would not reduce the rates again until the November meeting.
Inflation is not the only economic concern that annoys the economy.
Although the Productivity Commission on Friday reveals that its productivity performance has improved in June quarter, weak capital investment continues to reclaim growth in living standards.
Since its re -election in May, re -revitalizing sluggish productivity had taken mind for the government.
In August, Treasurer Jim Chalmers collected an economic round table aimed at increasing productivity, creating flexibility in the midst of global uncertainty and making the budget more sustainable.
However, many ideas that led to the event were not applied.
MS Bullock is expected to be asked to force RBA to end the changes in additional fees in bank payments.
The Bank argues that card payments will help increase competition in the card payment system.
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