Reserve Bank of Australia Governor Bullock said the policy committee has not ruled out further rate hikes and that it needs more information.

UBS warns El Niño risk could replace demand as the primary driver for agricultural commodities. UBS cites forecasts that the current El Niño has an 81% chance of reaching strong or very-strong intensity by year-end and a 97% probability of persisting into next year. If El Niño strengthens, key producing regions could see more extreme rainfall, drought or temperature swings, raising supply-side uncertainty. UBS flags potential upside for agricultural commodity prices as weather reasserts dominance over the supply-demand balance.

Reserve Bank of Australia Governor Bullock said reasons for raising rates include inf remaining too high and upside risks from the Middle East.