QIC sees risk of further RBA rate hikes beyond November as inflation persists
TLT•QIC warned Australian interest rates may rise beyond November as September headline inflation reached 4.3% and underlying inflation stood at 3.6%. It said persistent inflation could increase recession risks while growth remains below trend.
1. Rate outlook and inflation
QIC’s October 30 analysis said Australian interest rates may rise beyond November, increasing recession risks as growth remains below trend. September headline inflation reached 4.3%, while underlying inflation stood at 3.6%, with little prospect of easing for at least six months.
2. Pressures remain persistent
Brent crude exceeded US$110 a barrel, sustaining inflation pressures through imports and domestic supply chains. Consumer spending remained resilient, while data center investment added to demand pressures despite earlier rate increases.
