RBA Governor Bullock signals a potential August rate increase due to stubborn inflation and weak productivity growth.
Reserve Bank of Australia Governor Michele Bullock indicated a rate hike remains possible at the August 10–11 meeting, citing elevated inflation and weak productivity. The RBA aims to prevent cost pressures from becoming entrenched despite softer domestic demand and labor market conditions.
Inflation remains above target, while productivity growth has lagged, limiting economic expansion without fueling price rises. The RBA reiterated its readiness to tighten policy further if necessary to meet its inflation mandate.
AUD/USD traded slightly lower following the comments, with Australian bond yields also declining.