What happened
Former Reserve Bank of Australia board member Ian Harper stated that another interest rate increase before the end of the year is plausible. His comments follow the Monetary Policy Board's decision to raise the cash rate to a 15-year high of 4.6 per cent in September.
Why it matters here
Financial markets are pricing in a one-in-three probability of a follow-up rate hike at the Melbourne Cup Day meeting. Higher official cash rates increase borrowing costs across variable home loans and corporate debt, squeezing consumer spending and equity valuations.
What to watch
The RBA board's next monetary policy decision on the first Tuesday in November, alongside upcoming quarterly CPI data releases and employment statistics.
Source
abc.net.au