Bullock Warns of Inflation Risks as Rate Hikes Fail to Quell Concerns

Australia's central bank chief Michele Bullock has expressed concerns about inflation risks materializing in the country. Speaking to lawmakers, Bullock said that some of the upside risks flagged by policymakers are already taking shape. She cited the ongoing Middle East conflict and the AI boom as factors contributing to upward pressure on prices.

Bullock emphasized that a key question facing policymakers at their upcoming meeting is whether the three interest rate hikes this year will be enough to bring inflation back within the 2-3% target range, which matches a post-pandemic high of 4.35%. The Reserve Bank of Australia has implemented these rate hikes in an effort to curb inflation.