Westpac CEO Miller Says Energy Spike Adding to RBA’s Challenge

Anthony Miller Photographer: Brendon Thorne/Bloomberg Photo by Brendon Thorne /BloombergArticle content(Bloomberg) — Westpac Banking Corp.

Chief Executive Officer Anthony Miller said the recent oil-price shock is adding to a complicated picture for the Reserve Bank of Australia as it navigates inflationary pressure.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentMarkets have very quickly repriced, underscoring how the outlook has changed and toughening the RBA’s role, Miller told the Australian Financial Review Banking Summit in Sydney on Monday. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle content“Things have moved very fast,” Miller said. “This war and its disruption to the global energy supply chain is a further challenge,” with other factors already nudging inflation expectations higher, he said.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe Reserve Bank will deliver another rate rise on Tuesday to take the cash rate to 4.1%, economists predict. Money markets are pricing a two-in-three chance of a hike in March and see more tightening to come. The spiraling Middle East conflict has seen Iran strike energy-rich Gulf states in response to a US-Israeli air attack, with oil prices surging.Article contentExpectations for an RBA rate increase this week gathered momentum after Deputy Governor Andrew Hauser said last Tuesday that further inflationary pressure from the war in Iran “is not a helpful development.” Article contentOn Sunday, Treasurer Jim Chalmers warned Australia’s inflation rate could exceed 4.5% as oil prices climb. The RBA targets inflation at the midpoint of its 2% to 3% band.Article contentDespite the elevated projections for further hikes in Australia, it remains “remarkable” how well people are navigating this environment, he said. Non-performing loans are “the lowest we’ve seen for some time.”Article content—With assistance from Swati Pandey.Article contentTrending This TSX stock has 30% upside on the company's $11 billion project backlog, analyst says Investor Bank of Canada more likely to cut than hike after 'brutal' jobs report, say economists Economy Garry Marr: The pros and cons of doling out inheritance with a warm hand Family Finance Canadians’ average wealth hit $1.07 million, but what’s driving net worth depends on your age, province and bracket Wealth Posthaste: Oil supply shock could force the Bank of Canada's hand yet News Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. This TSX stock has 30% upside on the company's $11 billion project backlog, analyst says Investor Bank of Canada more likely to cut than hike after 'brutal' jobs report, say economists Economy Garry Marr: The pros and cons of doling out inheritance with a warm hand Family Finance Canadians’ average wealth hit $1.07 million, but what’s driving net worth depends on your age, province and bracket Wealth Posthaste: Oil supply shock could force the Bank of Canada's hand yet News