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The Reserve Bank of Australia (RBA) will need to raise interest rates again if upside risks to inflation materialize, Deputy Governor Andrew Hauser warned in a Wednesday speech. He said inflation remains “too high” and highlighted three key risks: the Middle East conflict, the global AI boom, and weak productivity. The central bank has already lifted rates by 75 basis points since the start of the year to curb stubborn price pressures, but held steady at 4.35% for a second consecutive meeting last week. Hauser’s remarks underscore the Bank’s readiness to act further should these risks intensify, keeping policy firmly focused on restraining inflation
