The ASX is riding the wave of a Wall Street rally after the US Federal Reserve left interest rates on hold for a second straight meeting and traders bet the next move will be a cut sometime next year.
"The cash rate futures pay out according to the value of the cash rate averaged over the calendar month — not what the RBA actually targets the cash rate to be. has used a speech in Melbourne to clarify comments which were interpreted as putting pressure on the Reserve Bank about its upcoming interest rate decision next Tuesday.
"Treasury was already preparing for a modest revision of the near-term inflation forecasts before last week's new numbers, recognising the upward pressure which came from earlier decisions by global oil producers to wind back supply," Mr Chalmers told the audience at the beginning of a speech that was otherwise about the clean energy transition.
"That independence is important, which is why I'm implementing the RBA Review recommendations which seek to strengthen it.""And we've been working closely together: bedding down the response to the RBA Review; renewing our approach to full employment; ensuring fiscal and monetary policy are complementary, not in conflict.