Reserve Bank of Australia Governor: There is a possibility of a rate hike in March.

The Governor of the Reserve Bank of Australia said on Tuesday that if the monetary policy committee determines that there is a risk of runaway inflation, there is a possibility of raising interest rates this month, and the market should be aware of this. Governor Michelle Bullock emphasized at a business conference that the committee may not necessarily wait until late April to announce the complete first quarter inflation data before deciding whether to tighten policy. Referring to the next committee meeting scheduled for March 17, Bullock stated, "There is a possibility of a rate hike at every meeting," and the committee will assess whether action needs to be taken sooner. Previously, it was widely believed that the RBA would wait until April 29 to release the first quarter consumer price index before deciding whether to raise interest rates again at the meeting on May 5. Bullock expressed her desire to dispel this market expectation. After the RBA's first rate hike in February, the market currently prices in a 24% probability of a 25 basis point hike in the cash rate from 3.85% this month. However, the market has fully priced in a rate increase to 4.10% in May and expects the year-end rate to be around 4.26%. When asked about the impact of the Middle East conflict and rising oil prices, Bullock pointed out that Australia is a net energy exporter, providing a buffer for the economy. However, she also warned that if global energy prices continue to rise, it could suppress consumer demand and economic growth, while also raising inflationary pressures.