SYDNEY, Oct 26 (Reuters) - The head of Australia's central bank on Thursday said the strong third-quarter inflation report was around policymakers' expectations, and they were still considering whether it would warrant a rate rise.
Reserve Bank of Australia Governor Michele Bullock warned earlier this week that the central bank will not hesitate to raise interest rates further if there is a "material" upward revision to the outlook.
Bullock noted that goods inflation is coming down as desired, but services inflation is higher than what policymakers were comfortable with.
The third quarter inflation was higher than what the central bank had forecast in August, which raised concerns about whether the RBA can get inflation back to the target band of 2-3% in late 2025, an already protracted path compared with other major economies.
Reporting by Stella Qiu; Editing by Leslie Adler, Sonali Paul and Shri NavaratnamOur Standards: The Thomson Reuters Trust Principles.
Persons:
Michele Bullock, Bullock, Stella Qiu, Leslie Adler, Sonali Paul
Organizations:
SYDNEY, Reserve Bank of Australia, Thomson