Reserve Bank of Australia deputy governor Hauser said inflation remains too high
and monetary policy must continue to restrain demand until it returns to target.
He warned further rate hikes remain on the table if inflation fails to decline.
Hauser said the RBA board is not forecasting a recession, describing the economy
as slowing rather than sharply contracting, but flagged upside risks to
inflation. He reiterated that the RBA raised the cash rate to 4.35% through
three hikes earlier this year, reflecting policymakers’ view that demand
exceeded supply and that tightening would limit the eventual rise in
unemployment.
