RBA Preparing for More Rate Hikes Amid Oil Crisis

RBA Governor Michele Bullock has warned that more interest rate hikes may be needed to get inflation under control, as the global oil crisis pushes prices higher.

In a speech on Tuesday, Bullock said underlying inflation had evolved broadly as expected since May, but was still too high at 3.6% annually, according to the trimmed mean measure.

The RBA has already raised rates three times since February, but further easing in demand is needed to bring inflation sustainably back to target, Bullock said.

Bullock's warning came as oil markets continued to be volatile, with Brent crude falling below $US90 a barrel on Tuesday after reaching a high of over $US100 earlier this month.