Bullock said the RBA is prepared to raise the cash rate further if needed, warning that underlying inflation is still expected to rise as fuel costs feed through.
Alpha Score of 37 reflects weak overall profile with moderate momentum, poor value, weak quality. Based on 3 of 4 signals — score is capped at 90 until remaining data ingests.
Reserve Bank of Australia Governor Michele Bullock kept a tightening bias firmly in place Monday, warning that inflation risks have not faded even as the full weight of earlier rate increases works through the economy.
Speaking in Sydney, Bullock said the Board remains focused on restoring price stability and is prepared to lift the cash rate again if needed. She acknowledged the global outlook has shifted but insisted the RBA's objectives "haven't changed."
The full effects of the rate rises delivered earlier this year "will take time to materialize," Bullock said, making it too early to judge whether current settings are restrictive enough.
Even if the latest disruption to global oil supplies proves temporary, Bullock warned that inflation risks have not disappeared. Underlying inflation is still expected to rise as fuel price increases flow through to other prices, she said, adding that "inflation and capacity pressures in the domestic economy were already too high prior to the recent shock."
The RBA governor noted some evidence that domestic demand and labor market conditions have been easing. Still, she argued the economy faces significant capacity constraints, and the Board remains focused on "preventing elevated cost pressures from entrenching inflation."
Bullock stopped short of signaling an imminent move. Instead, she framed the coming months as a test of whether earlier tightening will prove sufficient. She reiterated that monetary policy cannot solve Australia's weak productivity growth but can make its greatest contribution by maintaining "low and stable inflation" alongside sustainable full employment.
"The Board is prepared to act as required to achieve its mandate, including by increasing the cash rate further if needed," Bullock said.
The speech preserved the RBA's tightening bias without committing to a near-term hike. Markets took the tone as a reminder that the inflation fight is not over, even as the economy shows signs of slowing. The next Board meeting is scheduled for July.
RBA (RB GLOBAL INC.) carries an Alpha Score of 37 out of 100, labeled Mixed, in the Industrials sector.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.