Central Bank Communication
RBA Deputy Governor Signals End of Easing Cycle as Inflation Persists Above Target
08 Sep 2026
Reserve Bank of Australia Deputy Governor Andrew Hauser indicated that Australian CPI remains uncomfortably high above 3%, remarking that markets have likely witnessed the final rate reduction of this policy cycle. Hauser signaled that policy risks remain skewed toward prospective tightening, keeping the possibility of a rate hike alive as domestic inflation proves sticky.
Why it matters
The hawkish rhetoric from the RBA lifts front-end Australian government bond yields and establishes a defensive floor under the Australian dollar. By explicitly signaling an asymmetric risk of future rate hikes rather than further accommodation, the RBA diverges from peers navigating policy easing cycles.