RBA Hikes Interest Rates Again Amid Inflation Data Uncertainty

The Reserve Bank of Australia (RBA) has increased interest rates to a 15-year high of 4.6 per cent, but RBA governor Michele Bullock says the timing is unfortunate as it coincides with upcoming inflation data.

According to Ms Bullock, the trimmed mean measure of underlying inflation is expected to hold steady at 3.6 per cent on an annualised basis when updated figures are released by the Australian Bureau of Statistics (ABS) on Wednesday.

The RBA's next meeting in November will focus on where the economy is going, rather than its current state, with Ms Bullock stating that financial conditions need to be tightened enough to reduce inflation pressure.

NAB chief economist Sally Auld believes the RBA has done enough and may shift its focus from raising interest rates, while Ms Bullock attributed Australia's productivity growth as a major challenge in reducing inflation.