Reserve Bank of Australia’s Hauser signals persistent inflation could force additional monetary tightening to curb demand.
Reserve Bank of Australia Deputy Governor Andrew Hauser stated inflation remains too high, requiring monetary policy to reduce economic demand. He emphasized upside risks to inflation and did not rule out further rate hikes if price pressures persist.
Hauser noted the economy is experiencing a slowdown rather than a recession but warned that failure to control inflation could necessitate additional tightening. Market expectations had previously priced in a pause in rate adjustments.
The comments follow recent data showing Australia’s Q2 2026 Wage Price Index rose 0.8% quarter-on-quarter, matching forecasts. The AUD showed limited immediate reaction to the remarks.