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SYDNEY, Oct 26 (Reuters) - The head of Australia's central bank on Thursday said the strong third-quarter inflation report was about where policymakers thought it would come, and they were still considering whether it constitutes a "material" change to inflation outlook.
Reserve Bank of Australia Governor Michele Bullock warned earlier this week that the central bank will not hesitate to raise interest rates further if there is a "material" upward revision to the outlook.
The recent hawkish guidance and the stronger-than-expected inflation data led some economists to abandon the rate pause view, with the risk being a rate hike from the RBA in November would take the cash rate to 4.35%.
"We are still analyzing the numbers ... We have to look at whether or not it's material enough to change our views on monetary policy," said Bullock in front of lawmakers.
"Given the information that have come in since then (the August forecasts), particularly the monthly CPI indicator, we thought it was going to be about where it came out."
The RBA forecast in August that inflation was only projected to return to the top of the bank's target band of 2%-3% in late 2025. It will release its updated economic forecasts in early November.
Bullock noted that goods inflation is coming down as desired, but services inflation is higher than what policymakers were comfortable with.
This is Bullock's first such appearance after assuming the role of governor in mid-September.
