Bullock Warns of Possible Further Rate Hikes Amid Inflation Concerns

RBA Governor Michele Bullock warned that underlying inflation remains too high and may require further interest rate hikes to bring it under control.

The warning comes as global oil prices remain volatile, with Brent crude falling below $US90 a barrel. The conflict between the US and Iran has increased tensions in the Middle East, putting pressure on oil markets.

Bullock stated that while the labour market has eased somewhat and demand growth has moderated, further easing is needed to bring inflation sustainably back to target. She also mentioned that the Reserve Bank is prepared to act as required to achieve its mandate, including increasing the cash rate if necessary.