Wall Street Journal on new, more hawkish, Reserve Bank of Australia Governor Bullock

<p><br></p><p><br></p><p>A piece in the Wall Street Journal argues that new Reserve Bank of Australia Governor Bullock is more hawkish than previous Governor Lowe. I agree.</p><p>Says the article (in very brief):</p><ul><li><em>a new era of hawkishness that could fuel a series of rate hikes next year</em></li><li><em>

RBA Governor Michele Bullock … has moved to signal quite forcefully that the risks around inflation going forward are still considerable</em></li><li><em>The RBA is now indicating … increasingly it feels as if its tolerance for any persistence in the inflation data will see it hike further</em></li></ul><p>There is much more to it and <a href="https://www.wsj.com/articles/glynns-take-rba-is-more-hawkish-under-bullock-02cbe462" target="_blank" rel="nofollow">well worth checking out (link</a> but may be gated ).</p><p>The article refers to Bullock's speech in the middle of this week, covered here:</p><ul data-v-2b84ef95=""><li data-v-2b84ef95=""><a href="https://www.forexlive.com/centralbank/rba-governor-bullock-inflation-is-broad-based-trimmed-mean-remains-too-high-20231122/" target="_blank" data-article-link="true" data-v-2b84ef95="">RBA Governor Bullock: Inflation is broad-based, trimmed mean remains too high</a></li></ul><p>And emphasised here:</p><ul><li><a href="https://www.forexlive.com/centralbank/rba-governor-bullock-discusses-inflation-challenges-and-monetary-policy-response-20231123/" target="_blank" rel="follow">a more substantial monetary policy tightening is the right response to inflation that results from aggregate demand exceeding the economy’s potential to meet that demand</a></li></ul><p>In that second linked piece, you'll see National Australia Bank expecting a rate hike at the February 5-6 meeting in 2024, right after the update to official quarterly inflation on January 31 from the Australian Bureau of Statistics.&nbsp;The Journal piece on this:</p><ul><li><span>There’s growing attention on the first policy meeting for next year in February, when the RBA will have seen fourth-quarter inflation data. Any hint of disappointment in the CPI will likely spur further tightening</span></li></ul><figure data-media-><img src="https://images.forexlive.com/images/hawk%20on%20a%20forex%20trading%20room%20floor_id_de534814-8ce8-4078-b9fa-2542e980cc75_size900.jpg" alt="hawk on a forex trading room floor" width="1215" height="685" wrapper-="wrapper-" data-src="https://images.forexlive.com/images/hawk%20on%20a%20forex%20trading%20room%20floor_id_de534814-8ce8-4078-b9fa-2542e980cc75_size900.jpg" /></figure><p>Go the Hawks!</p><p><span><br></span></p><p><span><br></span></p><p><span><br></span><br></p>

This article was written by Eamonn Sheridan at www.forexlive.com.