RBA's Hauser Flags Interest Rate Hike Threat Amid Inflation Risks

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

Speaking at an event in Queensland, Hauser identified three upside risks to inflation: the Middle East conflict, the global AI boom, and poor productivity. He emphasized that inflation in Australia is still too high.

The RBA has already hiked interest rates by 75 basis points since February to combat stubborn inflationary pressures, with rates currently standing at 4.35%. Last week, the bank held interest rates steady for a second consecutive meeting.