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ForexMedium•12 February 2026•

1 min read

RBA Signals Potential Rate Hikes Amid Entrenched Inflation Concerns

Donald Trump against maps of the US and Iran, with oil barrels, pipelines, derricks, and upward financial charts amidst flames.

Reserve Bank of Australia (RBA) Governor Michele Bullock indicated that further interest rate increases might be necessary if Australian inflation remains entrenched. This hawkish stance reflects policymakers' growing concerns regarding persistent inflation expectations and productivity trends. BNY's EMEA Macro Strategist Geoff Yu highlighted these worries, suggesting the RBA is prepared to act decisively. The central bank's focus remains on bringing inflation back within its target band. Such a move would underscore the RBA's commitment to price stability, potentially impacting the Australian dollar.

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