RBA Deputy Concedes Need for Better Communication on Interest Rates

Andrew Hauser, the Reserve Bank's deputy governor, has acknowledged that the central bank needs to improve its communication of interest rate decisions. Speaking to the ABC's 7.30 on Tuesday, he said, 'People are furious about inflation, I understand why; it’s unfair, it hits people on low incomes.'

Hauser was recruited from the UK to help modernize the RBA's position in the minds of the general public. He emphasized that the bank's primary responsibility is to bring down inflation and put price signals back on track.

The Australian sharemarket puts a 60% chance of another interest rate hike next month, which would take rates to their highest point since October 2011. The US Federal Reserve is expected to raise its rate above the current 3.8%, while the European Central Bank is tipped to hike 25 basis points to 2.5%.

The RBA deputy conceded that a hike next month was not inevitable, citing Australia's strong economic growth and low unemployment as positives. However, he noted that inflation remains a major concern, with the bank considering several factors, including the ongoing conflict in the Middle East and potential global boom driven by AI.