Bullock: RBA Rate Hike Decisions Hang in Balance

RBA Governor Michele Bullock stated that the central bank's Monetary Policy Board will discuss whether its benchmark interest rate is sufficient to restrain price pressures and return inflation to target at their upcoming meeting on September 29.

Bullock emphasized that officials have been signalling mounting concerns about inflation being too high for too long and worried about additional price pressures, despite knowing that higher interest rates are difficult for Australians with mortgages who are also facing cost-of-living pressures.

The Reserve Bank chief noted that global cost pressures have increased due to the Middle East conflict, AI boom, and extreme weather events contributing to upward pressure on energy, agricultural, and technology-related prices.

Bullock pointed out that there seems little early prospect of a resolution to the US-Iran war, which has driven up energy prices, with Brent crude surging back above $100 a barrel this month.