Reserve Bank Signals Another Interest Rate Rise

The Reserve Bank of Australia has signaled that another interest rate rise could be on the way. According to Governor Michele Bullock, the risks of inflation are increasingly skewed to the upside. This is due to persistent global supply shocks and worries about inflation expectations.

Bullock warned that inflation remains too high and that it's getting harder for the bank to simply look through price pressures. The Governor said that the risks facing the inflation outlook are becoming increasingly one-sided, with all the evidence pointing to a rise in inflation.

Financial markets are now pricing in a 95% chance of another rate rise when the Reserve Bank board meets later this month.