RBA Sees 4.35% Rate Setting Curbing Inflation as 3 Hikes Start Hitting Economy
Updated
Updated · Bloomberg · Jun 5
RBA Sees 4.35% Rate Setting Curbing Inflation as 3 Hikes Start Hitting Economy
3 articles · Updated · Bloomberg · Jun 5
Summary
Michele Bullock said the Reserve Bank is already seeing signs its tightening is working through Australia’s economy, signaling policy is gaining traction.
Three rate increases this year have returned the benchmark cash rate to 4.35%, part of the RBA’s effort to contain a renewed pickup in inflation.
Bullock said the board will do what is necessary to meet its mandate, keeping the door open to further action if price pressures persist.
Middle East conflict-driven energy shocks remain a key risk, with the RBA watching for second-round effects that could spread inflation more broadly.