Reserve Bank of Australia Governor Bullock said the bank will adjust interest rates as needed.

The Reserve Bank of Australia’s MPC raised the cash rate target 25bps to 4.60%. The RBA said inflation remains elevated and several upside risks flagged in August are emerging. An expanded Middle East conflict has pushed global energy prices materially above the assumptions used in August. Rising AI-related demand is accelerating prices for technology goods. Domestic capacity constraints persist; bank contacts report firms facing higher costs and raising or planning further price increases, and short-term inflation expectations remain elevated. Recent Australian inflation data were stronger than at the previous meeting. Output growth has slowed, though Q2 GDP was marginally stronger than expected; consumer spending is cooling, while most capital-city house prices and new housing lending have declined noticeably.

Sources: Colombia has held technical, in-depth consultations with IMF officials in recent weeks, including discussions on accessing IMF financing.