RBA Governor Philip Lowe stated that if inflation becomes "entrenched," there will be another rate hike.

LootboxPhobia · 2026-02-12T00:59:22+00:00

Australian Reserve Bank Governor Michelle Bullock stated that if inflation becomes severe, the central bank will consider raising interest rates again. It is currently unclear how much rate hikes are needed to reduce inflation. Last week, the Reserve Bank of Australia raised the interest rate by 25 basis points to 3.85%.

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2026-02-12 00:59:22

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Investing.com - Michele Bullock, Governor of the Reserve Bank of Australia, stated on Thursday that if inflation becomes entrenched, the central bank will raise interest rates again as the country faces a rebound in inflation pressures by the end of 2025.

Speaking before the Senate Economics Legislation Committee, Bullock made it clear that it is still uncertain whether reducing inflation will require further rate hikes, after the RBA raised rates for the first time in two years last week.

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Bullock reiterated the RBA’s data-driven approach to adjusting interest rates. Last week, the RBA raised rates by 25 basis points to 3.85%.

“If we need to raise rates further because inflation has become entrenched, the committee will do so, because that is its top priority,” Bullock told lawmakers.

The rate hike last week came after Australian inflation rebounded in the second half of 2025, with core inflation once again exceeding the RBA’s 2% to 3% annual target.

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