Bullock Flags Tough Rate Hikes Ahead Amid Inflation Concerns

RBA Governor Michele Bullock has issued a stark warning about the future of cash rates in Australia, flagging 'difficult decisions' if inflation fails to return to target.

Bullock addressed the Anika Foundation in Sydney on Tuesday (28 July), stating that the world had become more shock-prone and that Australia's slowdown in productivity growth was making the economy more vulnerable to global disruptions.

The Reserve Bank of Australia has not ruled out further tightening, with Bullock saying 'the board is prepared to act as required to achieve its mandate, including by increasing the cash rate further if needed.'