RBA Signals Possible Rate Hike as Inflation Remains High

The Reserve Bank of Australia (RBA) is signaling that interest rates may rise again as inflation remains a concern. Deputy Governor Andrew Hauser stated that while there are positive signs about the Australian economy, high inflation is still a problem and another rate hike might be necessary.

Inflation is currently above the RBA's target range of 2-3% and has been since July, with a headline CPI of 3.5%. The bank will consider raising interest rates again if needed to bring down inflation in a timely manner, according to Governor Michele Bullock.

The major banks are also forecasting further rate hikes, with three out of four Big Four banks expecting at least one more increase before the end of the year. Macquarie Bank is predicting a rate hike in September, while Westpac has changed its stance and now expects a 25 basis point rise in November.