RBA governor signals more aggressive interest rate hikes may be needed
Reserve Bank governor Michele Bullock warned that faster interest rate increases may be needed to prevent inflation becoming entrenched.
Reserve Bank governor Michele Bullock warned that modest, gradual interest rate rises might not work fast enough to bring inflation back to target soon. Bullock spoke at the bank's annual conference in Sydney on October 8 and 9.
Stronger interest rate increases may be needed. Inflation expectations risk becoming set in wage and price decisions.
The cash rate is now at 4.6 per cent. This is the highest it has been in 15 years.
The RBA has raised it four times this year. Bullock also warned that unemployment may already be rising.
Higher interest rates are cooling the job market. The RBA will release new forecasts on November 3.
These will show whether inflation is expected to return to the 2-3 per cent target. This would happen after 2027.
- 4.6 percent
- Current cash rate
- 4 times
- Rate rises this year
- 15 years
- Highest in how long
- After 2027
- Expected inflation return
Why it mattersInterest rate decisions directly affect home loan repayments, savings interest, and job security for Australian workers and families.
AustraliaAny further hikes would push mortgage costs higher for borrowers and could accelerate job losses as businesses respond to weaker consumer demand across Australia.
✓ Claims checked against the source. checked 2 h ago
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