RBA's Hauser Set to Speak Amid Ongoing Inflation Concerns

The Reserve Bank of Australia (RBA) is set to provide more insight into its monetary policy decisions, as Deputy Governor Andrew Hauser is scheduled to speak soon. This comes at a time when the central bank has been keeping a tight grip on interest rates, with the cash rate sitting at 4.35 percent since early 2026.

The RBA raised the cash rate three times in February of that year, taking it to 4.35 percent. Since then, it has held steady for two consecutive meetings, most recently on August 11. However, inflation remains a concern, with headline CPI sitting at around 3.8 percent as of the June quarter, above the target band of 2-3 percent.

Hauser has repeatedly emphasized that the RBA still has 'work to do' in terms of taming inflation, describing price growth as too high despite some relief from softer fuel costs. He has also leaned on Phillips curve logic to justify the early hikes, arguing that acting promptly limits the eventual unemployment cost.

The RBA is facing two live complications: wages and external shocks. Private sector wage growth has been moderating, but the Fair Work Commission's 4.75 percent award wage increase in Q3 is expected to push WPI back up. Additionally, Governor Bullock has flagged the Middle East conflict and its effect on oil prices as a complication layered on top of excess domestic demand.