RBA Governor Warns Inflation Risks Materializing Amid AI Boom

Australia's central bank chief Michele Bullock warned lawmakers on Friday that some of the upside risks to inflation are materializing, driven by the Middle East conflict and the AI boom.

The Reserve Bank of Australia (RBA) has raised interest rates three times this year to 4.35%, but the governor questioned whether this would be enough to bring inflation back to the 2-3% target.

Bullock stated that while growth in the Australian economy is slowing, some of the risks to inflation are becoming more pronounced, particularly with regards to oil prices and AI-related technologies.

The RBA has been monitoring the situation closely and will meet again on September 28-29 to assess whether further rate hikes are necessary.