00:01So, congratulations sir.
00:04Preparing Australian borrowers for more pain.
00:07We're in a world of hard choices. I think that's the reality here.
00:11An inflation warning from the Reserve Bank's Deputy Governor,
00:14rolling up his sleeves less than two weeks out from the Board's next meeting.
00:20Sounding the alarm about inflation as businesses start to bake in bigger price rises.
00:26Even though we are laying shorter term pain on top of pain,
00:30it's to prevent a longer and potentially far worse pain down the track
00:34if inflation expectations get locked in.
00:37Increasing the chances of a Melbourne Cup Day rate hike.
00:40Financial traders now putting that prospect at 50-50, up from 30% before today.
00:47Absolutely, they're signalling that they're considering a rate hike next month.
00:52Westpac's chief economist used to sit inside the RBA boardroom as an assistant governor.
00:58We have for some time been expecting a rate hike in November.
01:02But while interest rates may go higher in the short term,
01:05experts are tipping a rapid reversal if the AI bubble bursts,
01:10amid deepening jitters from investors
01:14and growing community opposition to the data centre build-out.
01:18Broadly I would expect that it will lead to lower rates across the globe.
01:21With AI Factory Thermos' float failing earlier this month,
01:25pressure building globally on so-called neoclouds,
01:29and data centre firm NextDC's share price crashing today,
01:33perhaps the first cracks are already starting to show.
01:36note ofsnapsis on 3-50, up from past 15, up from n-80s as an email Lamborghini.
