In an interview on ABC 7.30, Reserve Bank of Australia Deputy Governor Andrew Hauser said a further interest rate rise was not inevitable but remained possible if inflation risks intensified. The Reserve Bank of Australia Board will assess whether three rate increases earlier in 2026 have been sufficient, with inflation still too high and a recent inflation reading and economic growth data both stronger than expected. Hauser identified the Middle East crisis, an unexpected global boom driven by artificial intelligence investment and weak Australian supply capacity as upside risks to inflation. While growth is around trend, unemployment is near historic lows and real household incomes are rising strongly, consumer confidence is weak and house prices are falling. Inflation is expected to return to the 2% to 3% target range by the end of 2027, but Hauser said rates would need to rise further than otherwise required if that gradual path threatened confidence in the target.
2026-09-08Reserve Bank of Australia
Reserve Bank of Australia Deputy Governor Hauser flags further rate rises if inflation risks intensify
Reserve Bank of Australia Deputy Governor Andrew Hauser said a further rate rise was possible but not inevitable as the Board assesses stronger inflation and growth data. Middle East developments, an AI-driven global boom and weak domestic supply capacity pose upside risks, and rates could rise further if the gradual return to the 2% to 3% inflation target becomes unfeasible.