The RESERVE BANK OF AUSTRALIA has warned official rates could rise further, keeping Middle East tensions and oil prices in focus for policy. Matthew Hassan, head of Australian macro forecasting at Westpac, said oil and gas supply normalization will be a slow, bumpy process and persistent domestic inflation would force the RBA to hike again in August. He added the RBA board will face a difficult choice given already-soft economic growth.

Momenta plans a Hong Kong listing with an offering of 19.93 million shares, subject to exercise of the overallotment option, priced at HK$295.6 per share; trading expected to begin July 8.

RBA deputy governor Kent said a review of alternative monetary tools leaves the central bank better able to respond to future shocks. He said the cash rate target remains the primary instrument, while other tools can provide additional support in exceptional periods but are more complex and carry greater risks. Kent referenced the MPC’s newly released framework for supplementary tools in a low-rate environment and said the Committee may be less tolerant of inflation undershooting the 2%–3% target range when rates are low. He added that, in that scenario, the bank could consider lowering the cash rate target earlier and more decisively to counter deflationary shocks.