RBA’s Hunter Backs Further Rate Hikes as Inflation Risks Entrench

Reserve Bank of Australia Assistant Governor Sarah Hunter said further rate hikes are needed this year to keep inflation in check. Her remarks reinforce a hawkish tone from the central bank as it evaluates the risk that price pressures become entrenched.

The comments have boosted expectations for a rate increase at the September 29 meeting. Markets are now assigning a higher probability to near-term tightening by the RBA.

The hawkish signal comes as the central bank weighs ongoing inflation risks, with officials indicating more action may be required through the rest of the year.