RBA Warns Rates Could Rise Again Despite Stable Inflation Expectations

The Reserve Bank of Australia (RBA) has left its key interest rate at 4.35% but warned that another hike is possible if inflation doesn't cool as expected.

Assistant Governor Christopher Kent signaled that policy is only 'somewhat' restrictive and that a lot of things would need to go right to keep rates on hold.

Kent pointed to risks like energy-market disruptions around the Strait of Hormuz and weak productivity growth, which can keep prices higher by raising business costs.