RBA flags worsening inflation; BOJ seen hiking in December

· Economy · Australia · Japan

Reserve Bank of Australia Deputy Governor Andrew Hauser warned the inflation outlook is 'worsening', reigniting talk of a fifth interest rate hike this year as the central bank weighs entrenched inflation against protecting the labour market. In Japan, a Reuters poll showed economists expect the Bank of Japan to raise rates to 1.50% in December, sticking to a quarterly pace of tightening. In the US, the 10-year Treasury yield moved lower after weak housing data, with sales, construction and sentiment all falling more than expected in September, ahead of the Federal Reserve's rate decision next week.

Why it matters：Major central banks are moving at different speeds on inflation, and their choices will steer borrowing costs, currencies and housing worldwide.

Key points

  • RBA deputy governor says inflation outlook is worsening
  • Reuters poll sees BOJ at 1.50% in December
  • US housing sales, construction and sentiment all fell

Sources (original reporting)

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