RBA's Hauser: Inflation outlook appears worse than forecast, slightly above expectations

Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser said on Wednesday that he’s still finalizing forecasts and is uncertain about board decisions. Hauser added that the inflation outlook appears worse than forecast and slightly above expectations.

Key quotes

Still finalising forecasts, uncertain about board decision.

Inflation outlook appears worse than forecast, slightly above expectations.

Companies cite cost pressures as top concern.

Inflation has remained elevated for an extended period.

Inflation expectations must stay anchored to target.

Observed some easing in job data and housing.

Monetary policy effective, but inflation outlook deteriorates.

Must respond to supply shocks to maintain inflation expectations.

Quarterly trimmed mean likely to exceed expectations.

You can't aim for current inflation, but it still matters.

Capacity constraints more intense than anticipated.

September labor report was somewhat weaker than expected.

Unemployment remains low, but labor market is softening.

Market reaction

At the time of writing, AUD/USD is holding higher ground near 0.7009, gaining 0.45% on the day.