BNY’s Geoff Yu highlights that Reserve Bank of Australia (RBA) Governor Michele Bullock signaled a possible rate hike at the August 10–11 meeting, stressing inflation is still too high and productivity weak. She noted domestic demand and the labor market have softened, but the RBA stands ready to tighten further if needed, with AUD/USD slightly weaker and Australian bond yields lower.

Bullock flags August hike risk

"Reserve Bank of Australia Governor Michele Bullock signaled that an interest rate hike will be on the table at the RBA’s August 10–11 meeting."

"She said inflation remains too high, with the board focused on preventing elevated cost pressures from becoming entrenched."

"Bullock said domestic demand has eased and labor market conditions have softened, but weak productivity is limiting the economy’s ability to grow without reigniting inflation."

"She warned that without stronger productivity, Australians will struggle to see meaningful real wage growth."

"The bank is prepared to tighten further if needed to meet its mandate."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)