RBA Warns Interest Rates Could Rise Again in September
Australian mortgage holders are bracing for more financial pain as Reserve Bank of Australia Governor Michele Bullock warned that interest rates could rise again as early as September 29. The RBA's next meeting is scheduled to take place on this date, and with inflation remaining too high at 3.5%, Bullock refused to rule out another rate hike.
In a parliamentary hearing, Bullock stated that the key question for the board is whether the three rate hikes already delivered this year will be enough to bring inflation down from its current level. She noted that the full effect of those earlier decisions has yet to be felt and emphasized the importance of reducing inflation to under 3%.
The RBA Governor attributed rising inflation to various factors, including the war in the Middle East, which is fueling higher petrol prices. Bullock warned that letting inflation get out of control would make Australians poorer, and she stressed the need for countermeasures to combat it.