RBA's Hauser Warns of Potential Rate Hike Amid Inflation Risks

Australia's Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser warned that interest rates may have to be raised again if inflation risks crystallize. Speaking at an event in Queensland, Hauser highlighted three upside risks to inflation: the Middle East conflict, the global AI boom, and poor productivity.

The RBA has already hiked interest rates by 75 basis points since February to combat stubborn inflationary pressures. Despite this, inflation in Australia remains too high, according to Hauser.

Last week, the RBA held interest rates steady at 4.35% for a second meeting, having previously raised them from their pre-hike level. The bank's decision comes as global economic uncertainty persists, with various factors contributing to inflationary pressures.