The Reserve Bank of Australia (RBA) board announced on Tuesday a unanimous decision to maintain interest rates at 4.35%. This move was largely in line with expectations, following the last rate increase three months prior in May.
Despite inflation coming in lower than anticipated since the last board meeting and unemployment slightly higher, RBA Governor Michele Bullock expressed ongoing concern about upside risks to inflation. She stated, "Inflation remains too high, and the board remains concerned about the upside risks."
Bullock further emphasised the RBA's readiness to act, telling journalists, "We’ve already raised three times, and we will go again if we need to." She also shared a personal view, suggesting it is "quite possible we might need to go, but we’ll wait and see what the data tells us."
Financial markets reacted to Bullock's statements, with the implied chance of another cash rate increase by the end of this year rising from 53% before the decision to 67% after her press conference.