Reserve Bank of Australia Deputy Governor Andrew Hauser said on Wednesday that Australia's inflation outlook has “deteriorated significantly” and that upcoming third-quarter inflation data may confirm this judgment. The above remarks were made before the RBA's policy meeting in early November; previously, bond traders' expectations for further interest rate hikes had cooled down. Hauser warned that communication between the Reserve Bank of Australia and companies showed that many companies are shifting upward pressure on costs, which may solidify higher inflation expectations. “The inflation outlook looks significantly worse than what we expected in August... Despite a cooling in the labor market, inflation has been slightly higher than expected,” he said. He added, “We've learned from our communication that cost pressure is the primary consideration... More and more companies see 3.0% to 3.5% inflation as the new normal.”

Reserve Bank of Australia Deputy Governor Andrew Hauser said on Wednesday that Australia's inflation outlook has “deteriorated significantly” and that upcoming third-quarter inflation data may confirm this judgment. The above remarks were made before the RBA's policy meeting in early November; previously, bond traders' expectations for further interest rate hikes had cooled down. Hauser warned that communication between the Reserve Bank of Australia and companies showed that many companies are shifting upward pressure on costs, which may solidify higher inflation expectations. “The inflation outlook looks significantly worse than what we expected in August... Despite a cooling in the labor market, inflation has been slightly higher than expected,” he said. He added, “We've learned from our communication that cost pressure is the primary consideration... More and more companies see 3.0% to 3.5% inflation as the new normal.”