RBA Vows to Raise Rates Again if Inflation Risks Materialize

Australia's central bank, the Reserve Bank of Australia (RBA), may need to raise interest rates again if inflation risks materialize, according to Deputy Governor Andrew Hauser.

Hauser identified three upside risks to inflation: the Middle East conflict, the global AI boom, and weak productivity.

If these risks come to fruition and inflation doesn't decrease, the RBA will raise interest rates again, Hauser said.

The RBA kept interest rates at 4.35% last week after increasing them by 75 basis points since February to control persistent inflation.