# 'Bad mistake to set policy on one number': RBA deputy plays down this week's inflation shock - ABC News

> Reserve Bank of Australia deputy governor Andrew Hauser said it would be a "bad mistake" to set interest rates on one data point after annual CPI inflation rose to 4.0% in May from 3.6% in April. He pointed to upcoming retail sales, employment and Q2 inflation data before the RBA's August 5-6 meeting. Markets had priced nearly a 50% chance of another rate hike.

- Date: 2024-06-27 · published 2024-06-27T12:00:00.000Z
- Category: macro · region Australia · magnitude medium
- Page: https://feedsoft.ai/events/30054-bad-mistake-to-set-policy-on-one-number-rba-deputy-plays-down-this-week-s
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

A possible RBA hike keeps the Aussie supported against the US dollar, which affects Australian dollar-linked export pricing and the cost of imported feed inputs. The central bank's caution reduces the odds of a near-term move, so the currency impact is likely to ease if upcoming data are soft.

## Read by commodity

- AUDUSD: neutral

## Sources

- abc.net.au: https://www.abc.net.au/news/2024-06-27/rba-deputy-governor-andrew-hauser-speech/104031550

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.