RBA signals fourth rate hike likely as inflation fears come true
RBA Governor Michele Bullock signals a likely fourth rate rise in late September as inflation pressures persist.
The Reserve Bank's inflation fears are coming true, governor Michele Bullock told parliament on Friday. Michele Bullock flagged a likely fourth rate rise in late September after already hiking three times this year.
Middle East conflict, the AI boom, and extreme weather have all pushed up energy, food and tech prices. Brent crude oil remains above $104 a barrel.
As businesses see no end to the conflict, they're starting to pass cost increases on to consumers, risking more persistent inflation. Even the RBA's August forecast that inflation would return to its 2-3% target by end of 2027 now looks uncertain.
Money markets are pricing in at least two more hikes by March 2027.
- Michele Bullock
- RBA Governor
- Three
- Rate hikes so far in 2026
- Above US$104 a barrel
- Brent crude oil price
- At least two more
- Expected rate hikes by March 2027
Why it mattersAustralians expecting rate cuts are now facing the possibility of rates staying high longer, raising mortgage costs and delaying relief for borrowers.
AustraliaAustralian homeowners and borrowers face the risk of higher interest rates staying in place through 2027, pushing back expectations of mortgage relief.
✓ Claims checked against the source. checked 6 d ago
