The RBA just gave us its strongest signal on the August rate decision
Deputy governor Andrew Hauser used a speech to talk up the importance of central bank predictability, just weeks after the RBA shocked markets by holding rates steady.
Andrew Hauser had an opportunity to talk down the certainty in the market for an August rate cut on Thursday morning. He didn't take it.
Instead, the Reserve Bank deputy governor used the last public appearance from a central bank official before its next interest rate decision, just one day after "very welcome" inflation figures were released, to talk about the goal of predictability.
“We should be trying to set policy right and we should be trying to set policy in a way that is predictable. And on the whole those two should overlap,” Hauser said at a fireside chat at investment bank Barrenjoey’s Economic Forum in Sydney this morning.
“For the vast majority of occasions those two goals … have actually been highly overlapping.”
