Economic Information Agency reported on the 30th that data released by the Australian Bureau of Statistics on Wednesday showed the closely-watched trimmed mean consumer price index rose 0.2% month-on-month, lower than the 0.5% increase in July. The index rose 3.6% year-on-year, in line with analysts' expectations and the previous month's annual increase.
After the data release, the Australian dollar fell 0.3% against the U.S. dollar, and the yield on Australia's three-year government bond, which is sensitive to monetary policy expectations, dropped 9 basis points to 4.88%, as investors reduced their expectations of another rate hike by the Reserve Bank of Australia in the short term.
Swap market pricing indicates the probability of another rate hike by the Reserve Bank of Australia at its November meeting is now about 28%, down from about 40% before the data release.
Facing persistent inflation, the Reserve Bank of Australia has raised interest rates four times this year, and after this week's increase, the policy rate has reached its highest level since the end of 2011. (rc)
After the data release, the Australian dollar fell 0.3% against the U.S. dollar, and the yield on Australia's three-year government bond, which is sensitive to monetary policy expectations, dropped 9 basis points to 4.88%, as investors reduced their expectations of another rate hike by the Reserve Bank of Australia in the short term.
Swap market pricing indicates the probability of another rate hike by the Reserve Bank of Australia at its November meeting is now about 28%, down from about 40% before the data release.
Facing persistent inflation, the Reserve Bank of Australia has raised interest rates four times this year, and after this week's increase, the policy rate has reached its highest level since the end of 2011. (rc)
