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Business / United States

Can the Reserve Bank swim against the global rising tide of interest rates?

ABC News
1 min read Rewritten in plain language

Interest RatesInflationEconomic Globalisation

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  • Our office argument is a microcosm of the same debate playing out in banks, trading rooms and probably at the RBA headquarters.
  • While the annual headline Consumer Price Index fell from 3.8 to 3.5% in July, that was higher than economists were predicting.
  • The Australian economy grew 2.1 per cent over the 12 months to June, once again a bit ahead of economist forecasts.
  • Today's US rate rise, on top of a move from the European Central Bank last week and the virtual certainty of one from the Bank of Japan tomorrow, is heaping pressure on the RBA to follow.
  • Over there, the unemployment rate started the year at 4.3 per cent and has fallen to 4.1 per cent.

5 sentences from our version of the report, chosen to cover it. Nothing here is written; every line is in the article below. How

While the annual headline Consumer Price Index fell from 3.8 to 3.5% in July, that was higher than economists were predicting.

The report’s most important sentence, shortened and in plain words. How

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Our office argument is a microcosm of the same debate playing out in banks, trading rooms and probably at the RBA headquarters.

The traders have swung to a rate hike, priced in at a 87 per cent probability according to LSEG data.

Of the big four banks, so far, only NAB has a September rate rise as its "base case", but the other three expecting the RBA to wait until November all acknowledge the September meeting is much "live".

While the annual headline Consumer Price Index fell from 3.8 to 3.5% in July, that was higher than economists were predicting.

The RBA's preferred trimmed mean number, that strips out the most volatile price moves, also remained stuck at 3.6 per cent.

The Australian economy grew 2.1 per cent over the 12 months to June, once again a bit ahead of economist forecasts.

Historically, 2.1 per cent is a mediocre annual growth rate for Australia, but the RBA now reckons the nation's economic speed limit is about 2 per cent, due to weak productivity.

Today's US rate rise, on top of a move from the European Central Bank last week and the virtual certainty of one from the Bank of Japan tomorrow, is heaping pressure on the RBA to follow.

The relative fall in the Australian dollar against the currencies of countries that are raising rates will push up import costs and add to inflation, while also making Australia's exports a bit more competitive.

Over there, the unemployment rate started the year at 4.3 per cent and has fallen to 4.1 per cent.

Shortened to 1 minute of reading, this version reads 10.2 on the Niral Score.

You are reading our version, not theirs. This is ABC News's report shortened to its most important sentences, in plainer words, with verdicts and loaded words taken out. Plain description stays, and so do adjectives that carry a fact, such as "former" or "federal". The reporting, the facts and the quotations are theirs — quotations are never edited — and the indicators beside it measure this version. Hover or tap Adjectives to see every one left in the text.

How this outlet filed it, and how we rewrote it

No other newsroom we read has filed on this event, so there is nothing to compare it with yet.

Outlet Niral ScoreAdjectivesSourcingSentimentHappiness
ABC Newsas they published this story 17.8 23 21 -0.2 42.1
Mundane Readneutralized from ABC News 11.4 21 21 -0.1 51.5

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