Reserve Bank of Australia official stresses persistent inflation above 2–3% target, supporting a tightening bias despite recent policy pause.
Reserve Bank of Australia Assistant Governor Tim Hauser stated inflation remains “far too high,” requiring further policy action to return it to the 2–3% target band. The RBA left its cash rate unchanged at 4.35% in June but maintained a tightening bias after three consecutive hikes earlier this year.
Recent data showed inflation picked up materially in late 2025, staying above the target despite a pause to assess lagged effects of prior tightening. Hauser argued proactive rate hikes could mitigate future unemployment costs, citing efforts to reduce excessive capacity pressures.
Hauser also noted potential benefits from lower global oil prices but cautioned that full geopolitical resolution remains uncertain. The remarks follow economic developments, including prospects of a US-Iran deal.