Reserve Bank officials face Senate hearing amid inflation data release

Reserve Bank of Australia Governor Michele Bullock and other top officials are scheduled to appear at a Senate estimates hearing on Wednesday. The hearing coincides with the release of September quarter inflation data from the Australian Bureau of Statistics.

Economists from Citi expect the quarterly trimmed mean—the central bank’s preferred measure of underlying inflation—to reach 1%, implying an annual growth rate of approximately 3.6%. This exceeds the Reserve Bank’s August forecast of a 0.8% quarterly increase.

Market speculation regarding a potential interest rate hike during the November 3-4 board meeting has increased. Following recent comments from Deputy Governor Andrew Hauser suggesting the inflation outlook is 'materially worse,' market pricing for a November rate rise rose above 50%. However, some economists at NAB maintain that the cash rate will remain at 4.6%, citing below-trend growth and a gradually easing labor market.