Reserve Bank of Australia

Australia’s central bank will raise rates again if inflation becomes entrenched, governor says

[SYDNEY] Australia’s central bank will raise rates again if inflation becomes entrenched, its governor said on Thursday, having just delivered the first rate rise in two years last week.

The Australian dollar climbed 0.7 per cent to reach US$0.7122, the first break above the 71-cent barrier since early 2023.

Australian dollar hits three-year peak on rate-hike bets

[SYDNEY] The Australian dollar climbed to a fresh three-year peak on Wednesday as the central bank signalled hawkish policy again, while the greenback came under pressure from softer US economic data.

Reserve Bank of Australia Deputy Governor Andrew Hauser (right) said many parts of the economy were doing well but growth as a whole was bumping up against capacity constraints.

Australia central bank again warns inflation is too high

[SYDNEY] A top Australian central banker said on Wednesday inflation was too high and policy makers were committed to doing whatever was necessary to bring it to heel.

Spending can be an important consideration for monetary policy as private consumption accounts for more than half of gross domestic product.

Australia’s household spending surprisingly declines in December

Economists and financial markets expect another hike this year

Investors had been leaning toward a rate rise given inflation surprised on the high side in the fourth quarter.

Australia raises rates for first time in two years

Investors are now betting on a follow-up hike in May

The RBA decision lands amid increasingly divergent global monetary paths.

Australia set for U-turn to rate hike in break from global trend

The turnaround has been driven by stubborn price pressures buttressed by a surprise drop in unemployment

The central bank’s target is to keep inflation between 2% and 3% over the long run, with a focus on 2.5%.

Australia central banker says inflation rate still too high

Interest rates might have to rise from the current 3.6% if prices did not cool

The Aussie rose 0.2 per cent to 67.13 US cents, the highest since October 2024.

Australian dollar climbs to highest since Oct 2024 on RBA bets

[CANBERRA] The Australian dollar climbed to its strongest in more than a year after traders ratchet expectations the Reserve Bank of Australia (RBA) will quickly shift to raising interest rates early ...

RBA Governor Michele Bullock had already taken a hawkish turn at a post-meeting media conference, ruling out further rate cuts and warning hikes might be needed if inflation did not subside.

Australia central bank saw risk of rate rise in 2026 to contain inflation

Core inflation rose to 3.3 per cent in October, taking it further above the RBA’s target band of 2 per cent to 3 per cent

The RBA has cut interest rates three times this year to 3.6%, but a recent spike in inflation has forced policymakers to warn that rate hikes might be needed next year.

Australia government forced to lift inflation forecast, keeps spending plans intact

Inflation has increased recently due to services and prices of new housing