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Australia's central bank chief warns inflation risks materialising
Reserve Bank of Australia Governor Michele Bullock warned that inflation remains too high and that interest rates may rise at the board’s September 29 meeting.
Bullock said inflation is 3.5%, while the bank aims to reduce it below 3%.
Bullock and Treasurer Jim Chalmers linked higher inflation pressures to the Middle East conflict, with petrol prices potentially reaching $2.60 per litre.
The Reserve Bank of Australia’s cash rate is 4.35%, and some economists predict three further increases could push mortgage rates above 7%.
The Mike Hosking Breakfast discuss ANZ's forecast of three OCR hikes to 3.5% by March amid oil-driven imported inflation, a weak NZ dollar, and stronger domestic growth.