RBA Governor Warns of Potential Fourth Interest Rate Hike

Reserve Bank of Australia (RBA) Governor Michele Bullock has issued a warning to households about the potential for another interest rate hike. Speaking at an event, Bullock stated that inflation is above target and that further action may be necessary to bring it back down.

The current cash rate is 3.6%, which is well above the RBA's target of 2-3%. Bullock noted that rate changes operate with a lag, but she also suggested that an increase in unemployment may be needed to reduce inflation.

Bullock's comments come ahead of new inflation data being released on August 11. The RBA is expected to make a decision about interest rates at its next meeting on the same day. If the cash rate is increased, it would take it to the highest setting since 2011.