RBA Reinforces Hawkish Stance Amid Inflated Economy

Australia's central bank, led by Governor Michele Bullock, emphasizes its readiness to increase interest rates to curb inflation. Despite keeping the cash rate steady since November, core inflation remains high. Bullock signals no immediate rate cuts, highlighting persistent inflation and strong employment data.

Australia's central bank will not hesitate to raise interest rates if necessary to control inflation, stated its chief on Thursday, reinforcing the institution’s hawkish messaging as underlying inflation remained robust.

Reserve Bank of Australia (RBA) Governor Michele Bullock emphasized in Armidale, New South Wales, that the board remains vigilant to inflationary risks, even after deciding to maintain the current rate. 'I know this isn't what people want to hear, but persistently high inflation hurts everyone,' she said.

The RBA has held its policy steady since November, considering the current cash rate of 4.35% sufficient to meet its inflation targets without jeopardizing employment. However, with core inflation at 3.9% last quarter, rates are unlikely to decrease in the near term, despite market speculations.