RBA Hints at More Rate Hikes to Combat Persistent Inflation

RBA Assistant Governor Sarah Hunter warned that further interest rate hikes may be needed to curb inflation in Australia. Speaking at an Australian Financial Review event, Hunter emphasized that the Reserve Bank of Australia (RBA) remains focused on bringing inflation back to target.

The RBA left its cash rate unchanged at 4.35% in August, citing inflation as still too high and warning about upside risks requiring further tightening.

Australia's annual inflation rate was 3.5% in July, while stronger-than-expected second-quarter economic growth has raised concerns that demand remains resilient.