RBA's Hunter Warns of Enshrined Inflation as Rate Hike Probability Hits 94%

The Reserve Bank of Australia's (RBA) Assistant Governor Sarah Hunter has reiterated the need for further rate hikes to keep inflation in check. In a recent podcast, Hunter emphasized that inflation has been too high for too long and there are increasing risks of it becoming entrenched.

Hunter stated that 'We can see lots of reasons why inflation might be a bit higher than what we currently think.'

The RBA has already raised rates three times by 75 basis points this year, bringing the cash rate back to post-pandemic levels of 4.35%. Money markets forecast a 94% probability that the RBA will increase rates by 25 basis points at the September 29 meeting.