RBA Governor Bullock Signals Materializing Upside Inflation Risks Ahead of Rate Decision
| Pair | Now | Since publish |
|---|---|---|
| AUDUSD | — | — |
- RBA Gov. Bullock: Upside inflation risks materializing.
- Oil gains, cost pass-through fuel persistent inflation.
- Businesses fear inflation above 3%; RBA checks policy tightness.
Reserve Bank of Australia (RBA) Governor Michele Bullock stated on Friday that upside risks to the inflation outlook, initially flagged at the August board meeting, are now materializing. She noted that while Australian economic growth is slowing, factors such as Middle East oil price gains and firms passing on higher input costs are contributing to persistent price pressures. Bullock highlighted that the labor market remains near full employment, albeit slightly tighter. The RBA board is set to convene later this month to assess whether the current benchmark interest rate is adequate to curb inflation and guide it back to the target range, with her comments suggesting a further rate hike remains a live possibility, potentially offering support to the Australian dollar.
RBA Governor Bullock stated the Board is assessing whether current monetary policy is sufficiently tight. She also highlighted a “higher for longer” outlook for oil prices and observed that businesses are now more inclined to pass on cost increases. Separately, Bullock noted that Australian businesses are starting to voice concerns that elevated inflation may not return below 3%.