Odds of fifth interest rate hike this year likely to shorten as RBA deputy warns inflation outlook ‘worsening’

Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser has warned that the nation's inflation outlook has deteriorated, describing the current economic environment as a "central banker's nightmare." The comments come ahead of the RBA's next interest rate decision, with market analysts currently estimating a 42 per cent probability of a rate hike in November.

Hauser indicated that the central bank faces difficult trade-offs as it attempts to curb entrenched inflation while simultaneously managing the risks to the domestic labour market. The warning has led to expectations that the likelihood of a fifth interest rate increase this year may rise.