Reserve Bank of Australia signals potential further tightening as inflation remains elevated despite household pressures.
Reserve Bank of Australia Governor Michele Bullock stated inflation remains too high, leaving the door open for additional rate hikes if necessary. The central bank acknowledged the strain on households but emphasized the priority of controlling inflation.
Recent data showed inflation above the RBA’s target range, with markets pricing in a 25-basis-point hike in the coming months. The RBA last raised rates in November 2023, pausing since to assess economic conditions.
Markets reacted cautiously, with the Australian dollar holding steady against the USD as investors await further guidance.