RBA Governor Bullock Signals Readiness for Further Rate Hikes to Curb Inflation

Reserve Bank of Australia (RBA) Governor Michele Bullock delivered a hawkish message during a Senate hearing, emphasizing that inflation levels exceeding 3% remain "unacceptable." Bullock confirmed that the central bank's board is prepared to implement further interest rate hikes if inflationary pressures remain entrenched in the economy. She underscored that the RBA's primary mandate is to return inflation to its target range of 2-3% as quickly as possible. These comments suggest that the central bank is not yet ready to pivot toward a more dovish stance, despite global trends. Consequently, the Australian Dollar (AUD) may find support as markets price in a "higher-for-longer" interest rate environment. The Governor's firm stance highlights the ongoing challenge of balancing economic growth with price stability.