RBA Warns of Rate Hike if Inflation Risks Become Reality

The Reserve Bank of Australia (RBA) may 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 those upside risks to inflation crystallise and we don’t see inflation coming down, we will have to raise interest rates again and we will do so,' Hauser said.

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