Reserve Bank of Australia Governor Michele Bullock said on September 22 that upside risks to inflation may be materialising, pointing to sustained energy costs and continued excess demand at home. Core inflation was running at 3.6%, above the RBA’s 2%–3% target band, while the cash rate stood at 4.35%. The central bank was due to meet on September 29. Bullock said she was outlining risks, not signalling a decision in advance. Reuters also reported that markets were widely expecting a possible rate increase.
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Australia’s Central Bank Flags Renewed Inflation Risks
Reserve Bank Governor Michele Bullock said high energy prices and strong domestic demand may be keeping inflation risks elevated ahead of the September 29 policy meeting.
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