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RBA warns rates may rise again if inflation fails to cool

AUD/USD dipped about 0.1% to around 0.7078 after Deputy Governor Andrew Hauser’s remarks.

Reported · Written up by our desk · Central Banks

FXStreet reports that Reserve Bank of Australia Deputy Governor Andrew Hauser said inflation is still too high and monetary policy needs to bring price pressures down by reducing demand in the economy.

Hauser said the RBA is not expecting a recession, but he flagged upside risks to inflation. He added that if inflation does not come down, the central bank will have to raise interest rates again.

Following the comments during the Asian trading session, a marginal downtick was seen in the Australian dollar. At press time, AUD/USD was down 0.1% and traded near 0.7078.

The RBA sets interest rates and manages monetary policy for Australia, with monetary decisions made at 11 meetings per year plus any needed ad hoc emergency meetings. Its mandate includes maintaining price stability, defined as inflation of 2% to 3%, and supporting the stability of the currency.

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