ODDS OF FIFTH INTEREST RATE HIKE THIS YEAR LIKELY TO SHORTEN AS RBA DEPUTY WARNS INFLATION OUTLOOK WORSENING | RESERVE BANK OF AUSTRALIA

What happened: Reserve Bank of Australia deputy governor Andrew Hauser warned of "hard choices" and a "materially worse" inflation outlook, and market pricing for a rate hike on 3 November rose. Key numbers: Odds of a hike rose from 30% to 45% after his comments. Why it matters: Hauser said businesses are starting to treat 3.5% inflation as the "new normal," and removing entrenched inflation psychology could require higher rates. He said the board is weighing weaker activity and a softer labour market against upside inflation risk.

RBA deputy warns worsening inflation outlook, likely reducing odds of a fifth rate hike this year.

RBA deputy warns worsening inflation outlook, likely reducing odds of a fifth rate hike this year. — impact context not separately stored; see What changed.