Bullock Warns Inflation Still Too High Amid Ongoing Oil Price Volatility

RBA Governor Michele Bullock warned that underlying inflation remains too high and that further interest rate hikes may be needed to bring it under control. This comes as global oil prices continue to fluctuate due to the ongoing conflict between the US and Iran.

The Reserve Bank has raised interest rates three times since February, but Ms Bullock said that demand growth needs to moderate further to achieve sustainable inflation. She emphasized that the Board is prepared to act as required to achieve its mandate, including increasing the cash rate if needed.

Ms Bullock's warning comes amidst a backdrop of volatility in oil markets. The global benchmark Brent crude has fallen below $US90 a barrel, having earlier edged above $US100. The Treasury Department has warned that the conflict poses a 'substantial threat to global inflation.'