Michele Bullock drops her usual caution to spell out the threat of higher prices and lower growth
The Reserve Bank of Australia has delivered its third rise in official interest rates for the year, taking the cash rate up another 0.25 percentage points to 4.35%, and thereby completely reversing the cuts of 2025.
While some make take comfort from the RBA governor’s words in her post-decision press conference that indicated that we could now expect a pause in rate hikes for at least a little while, her overall responses to questions from the media were surprisingly blunt, as well as fairly alarming regarding the economic outlook.