Bullock Signals RBA's Readiness for Further Rate Hikes Amid Inflation Concerns

RBA Governor Michele Bullock signaled the Reserve Bank of Australia's readiness to raise interest rates again if necessary, as it works to combat inflation and promote economic growth.

Bullock spoke at an Anika Foundation fundraising lunch in Sydney, emphasizing that monetary policy is designed to slow demand and align it with supply, thereby alleviating inflation pressures.

The cash rate currently stands at 4.35%, following three consecutive increases earlier this year, totaling 75 basis points. Each of those hikes adds approximately $80 per month to minimum repayments on a $500,000 mortgage.

Bullock acknowledged that economic growth is slowing but framed it as a deliberate outcome of the bank's policy settings, necessary to bring inflation back down sustainably to target.