RBA’s Hauser shrugs off CPI miss, says rate cuts still unlikely

The RBA remains biased against further near-term rate cuts, despite the softer-than-expected inflation data, according to comments from Deputy Governor Andrew Hauser. Speaking in an interview with Australian Broadcasting Corporation, Hauser said the likelihood of additional easing in the near term remains “probably very low”.

Hauser stressed that the November CPI downside surprise has not altered the central bank’s thinking. He described the data as “helpful” but said it was “largely as we expected,” adding that there was “not a lot of news” in the release from a policy perspective. Inflation remains above the RBA’s 2–3% target range, reinforcing the case for caution.

He also noted that part of the moderation in inflation reflected temporary factors such as Black Friday discounting, while cost pressures in housing-related components actually picked up. As a result, policymakers are placing greater emphasis on the upcoming quarterly inflation report due later this month.

Hauser said the RBA will assess that quarterly data in the context of the broader economy rather than reacting mechanically to a single number. While an extreme outcome would prompt deeper scrutiny, he made clear there is no simple rule linking specific inflation prints to policy move.

“We don’t have a rule that says if it’s 0.9 we hold, and if it’s 1 we raise and if it’s 0.7 we cut — we take a view of the whole economy,” Hauser emphasized.