Hauser Warns: Higher Interest Rates Loom If Inflation Persists

RBA Deputy Governor Andrew Hauser warned that interest rates may need to be raised again if inflation doesn't come down. This statement had an immediate effect on the Australian Dollar (AUD), which dropped by 0.1% in value against the US dollar, trading near 0.7078 at press time.

The Reserve Bank of Australia's primary mandate is to maintain price stability, with an inflation rate of 2-3%. Hauser emphasized the importance of bringing down inflation, suggesting that further interest rate hikes may be necessary to achieve this goal.