RBA Governor Bullock: Past Rate Hikes Not Enough to Cool Inflation Yet

RBA Governor Michele Bullock emphasized that the central bank's primary concern is whether the cumulative tightening delivered so far will be sufficient to bring inflation back to target.

Bullock framed the current policy debate around the lagged effects of past rate increases, signaling that the board remains data-dependent and cautious about further action.

The RBA has raised the cash rate by 425 basis points since May 2022, taking it to 4.35%, with markets pricing in a potential easing cycle later in 2025.

Bullock's comments suggest the board is not yet convinced that inflation is under control, which means mortgage rates are likely to remain elevated for an extended period.