RBA Governor Warns of Inflation Risks Ahead of Interest Rate Decision

Reserve Bank of Australia (RBA) governor Michele Bullock has issued a warning that inflation in Australia is too high, just days before the bank's next interest rates decision. Speaking to a House of Representatives Economics committee on Friday, Bullock said the Middle East conflict and AI boom are pushing up prices. She stated that 'inflation is too high' and 'we are focused on getting it back down.'

The RBA has increased the benchmark cash rate by 0.75 percentage points in three separate increases this year to combat inflation, but Bullock warned that a prolonged period of elevated fuel prices caused by war could add directly to inflation.

Westpac, one of Australia's biggest banks, has revised its interest rate forecast and now expects the RBA to lift interest rates higher this month. The RBA monetary policy board will next meet on September 28 and 29 to consider the level of interest rates.