Former RBA Board Member Calls Rate Hike ‘Plausible’ (But Not Likely)

Ian Harper – who stepped down from the Reserve Bank of Australia’s Monetary Policy Board in August – told reporters that another rate hike this year remains plausible, even if it isn’t necessarily likely.

He likened the distinction to a menu item: “Plausible” means the dish is on the menu, while “likely” means the chef is actually cooking it. In other words, a rate rise could be on the table without the RBA having a firm appetite for it right now.

Economists and market watchers will no doubt chew over the comment, but for now the RBA has made no concrete move toward a higher cash rate.