Reserve Bank of Australia deputy governor Hauser said he was surprised public
trust in the central bank has remained broadly stable despite large rate hikes.
Hauser said trust indicators have been roughly steady or slightly higher over
the past 18 months, even as rates rose and inflation stayed well above target.
The RBA this week implemented its fifth rate increase since 2026, lifting the
cash rate to 4.85% — an 18-year high. Hauser warned higher rates will further
raise mortgage burdens and come amid rising fuel costs, cost-of-living
pressures, climbing unemployment and a weakening housing market, which have left
consumer confidence in pessimistic territory. He noted these 'trust reserves'
may temporarily cushion weak economic performance but will eventually be
depleted.
