The Reserve Bank of Australia is reaffirming its commitment to tame inflation with Assistant Governor Sarah Hunter stating Wednesday that the Board stands ready to take necessary action to achieve its target. The comments come as policymakers assess the impact of recent oil price volatility on the Australian economy, which has so far failed to trigger a significant economic slowdown despite elevated energy costs.
Hunter’s remarks signal the RBA remains in data-dependent mode while maintaining a hawkish bias on inflation control. The statement suggests Australian interest rates could face further upward pressure if price growth remains stubborn, even as global oil shocks create uncertainty around growth trajectories. Markets should watch upcoming Australian inflation prints closely as the central bank appears unwilling to tolerate persistent price pressures despite external headwinds.
FXnCO Insight
AUD traders should prepare for potential volatility around Australian CPI releases, as the RBA’s explicit commitment to intervention creates scope for additional rate hikes if inflation data surprises to the upside.
Source: FXStreet