⚡ RBA’s Bullock: Inflation likely to rise further in near term

Reserve Bank of Australia Governor Michele Bullock warned lawmakers Thursday that inflation pressures are expected to intensify in the coming months during her testimony before the Senate Economics Legislation Committee. The RBA chief’s comments signal continued uncertainty for Australia’s monetary policy trajectory as the central bank balances stubborn price growth against broader economic stability concerns.

Bullock’s remarks come as markets closely monitor the RBA’s next moves, with traders split on whether the central bank will maintain its current stance or adjust rates to combat persistent inflation. The Australian dollar could face near-term volatility as forex markets digest the governor’s hawkish-leaning outlook. Fixed income and equity traders should prepare for potential reassessment of RBA rate expectations, particularly as inflation data continues to surprise to the upside.

The warning reinforces challenges facing Australia’s economy as global inflationary pressures remain elevated despite aggressive tightening cycles across developed markets.

FXnCO Insight

AUD pairs may experience heightened volatility ahead of Australia’s next inflation print, with options positioning likely to reflect increased rate hike probability pricing.

Source: FXStreet