Election official explains when they'll know if Trump or Harris won GA
Baltimore community school coordinator bridges cultural gap for Bay Brook students
Prosecutors will not file criminal charges against 2 people at center of Los Angeles racism scandal
North Korea claims 1.4 million young people joined the army this week
Socially distanced layout of the world’s oldest cities helped early civilization evade diseases
Governor orders evacuation of Ukraine's Kupiansk city
Tow truck hauls away massive shark that washed ashore Cape Cod beach
Australia's planned social media ban raises teen isolation fears
Tom Brady joins Las Vegas Raiders ownership group
NFL Commissioner Roger Goodell says the league still reviewing latest claims against Deshaun Watson
Lawyers for Sean 'Diddy' Combs ask judge to release identities of his accusers
SYDNEY (Reuters) - Australia's central bank is not concerned that inflation expectations could become de-anchored in the near-term, a top official said on Wednesday, although policymakers remained alert to such a risk.
In a speech in Sydney, Reserve Bank of Australia Assistant Governor Sarah Hunter said inflation expectations have not become de-anchored, with new research showing that households appear to have looked through the recent spike in inflation more than the central bank might have expected.
The relationship between current wage expectations and inflation expectations is relatively weak, the RBA also noted.
"So we’re not currently concerned that expectations could become de-anchored in the near term," said Hunter at an Citi investment conference.
"But we do think it's important that we track how they’re evolving and that we understand how expectations are formed, so we can monitor whether there are any signs of this risk materialising in the future."
The RBA has kept rates steady since November, judging that the cash rate of 4.35% - up from a record-low 0.1% during the pandemic - is restrictive enough to bring inflation to its target band of 2%-3% while preserving employment gains.
However, underlying inflation has remained sticky at 3.9%, one reason that policymakers do not expect inflation to slow to the midpoint of the target band in 2026. Swaps imply just a 40% probability that the RBA can cut in December.
(Reporting by Stella Qiu; Editing by Stephen Coates)
