The Bank of Australia appears to be using a “one blushes, one blushes” strategy to release signals of its intentions ahead of policy meetings. Vice President Andrew Hauser played the “white-faced” role. His austerity remarks last week frightened the market and triggered a shift in market expectations for the timing of interest rate hikes from May to March. Governor Michelle Bullock, on the other hand, is more cautious; she tends to wait for data to provide justification for policy changes. Bullock is likely ready to wait until May and the first quarter CPI data will be released before the Middle East conflict.

The Bank of Australia appears to be using a “one blushes, one blushes” strategy to release signals of its intentions ahead of policy meetings. Vice President Andrew Hauser played the “white-faced” role. His austerity remarks last week frightened the market and triggered a shift in market expectations for the timing of interest rate hikes from May to March. Governor Michelle Bullock, on the other hand, is more cautious; she tends to wait for data to provide justification for policy changes. Bullock is likely ready to wait until May and the first quarter CPI data will be released before the Middle East conflict.