Deputy Governor Hauser signals potential rate hikes if inflation fails to decline amid external and domestic pressures.
The Reserve Bank of Australia retains a hawkish bias on inflation, with Deputy Governor Andrew Hauser stating further rate increases remain possible. Hauser cited external risks, including Middle East-driven fuel cost spikes, and domestic factors like capacity pressures and weak productivity as key concerns.
Inflation remains elevated, with the RBA leaving the cash rate unchanged at its latest meeting. However, officials warn that upside risks could derail progress, necessitating additional tightening if inflation does not continue its downward trajectory.
Recent wage data showed the Wage Price Index rose 0.8% quarter-on-quarter in Q2 2026, keeping annual growth at 3.2% year-on-year, unchanged from Q1 but down from 3.4% in Q2 2025.