RBA Chief Says Inflation Risks Are Rising, Hinting at Possible Further Rate Hikes

Reserve Bank of Australia Governor Michele Bullock said the Middle East conflict has pushed up global energy prices, while the AI boom and extreme weather are adding upward pressure on some commodity prices, and Australian inflation could come in higher than the bank's August forecast. Australian inflation has recently remained between 3.5% and 4%, above the 2%–3% target range. Bullock said domestic capacity pressures and weak productivity growth are also adding to inflation, and the Monetary Policy Board will assess next week whether earlier rate hikes are enough to bring inflation back to target. The RBA has raised rates by a cumulative 100 basis points so far this year.