{"slug": "reserve-bank-of-australias-deputy-governor-warns-of-higher-rates-if-inflation", "title": "Reserve Bank of Australia’s deputy governor warns of higher rates if inflation risks crystallise", "summary": "Reserve Bank of Australia Deputy Governor Andrew Hauser warned on Wednesday (Aug 19) that the central bank will have to raise interest rates again if upside risks to inflation crystallise, citing the Middle East conflict, the global AI boom, and poor productivity. The RBA held rates at 4.35 per cent last week, and markets imply around a 60 per cent chance of a further increase to 4.6 per cent by December.", "body_md": "# Reserve Bank of Australia’s deputy governor warns of higher rates if inflation risks crystallise\n\nThe central bank has warned further policy tightening cannot be ruled out\n\n[SYDNEY] Australia’s central bank will have to raise interest rates again if upside risks to inflation crystallise, a top official said on Wednesday (Aug 19), reiterating a hawkish warning after policymakers held rates steady for a second meeting.\n\nSpeaking at an event in Queensland, Reserve Bank of Australia Deputy Governor Andrew Hauser laid out three upside risks to inflation on his mind - the Middle East conflict, the global AI boom and poor productivity.\n\n“If those upside risks to inflation crystallise and we don’t see inflation coming down, we will have to raise interest rates again and we will do so.”\n\nThe RBA held interest rates steady at 4.35 per cent last week, having already hiked by 75 basis points since February to restrain stubborn inflationary pressures. It has warned further policy tightening cannot be ruled out.\n\nAs a result, the economy has slowed, inflation readings have come in lower than expected and the [housing market has weakened](https://www.businesstimes.com.sg/property/australia-housing-prices-drop-slows-economy) by more than the central bank expected.\n\nMarkets imply around a 60 per cent chance of a further increase to 4.6 per cent by December as [oil prices climbed to three-week highs](https://www.businesstimes.com.sg/companies-markets/energy-commodities/oil-closes-three-week-high-hopes-us-iran-peace-deal-fade) amid the stalemate in the Middle East, though investors assume that will likely mark the end of the tightening cycle.\n\nHauser added that the central bank has seen a bit of a slowdown in consumption and employment growth, but needs to see more still.\n\n“That is not a slump. It is not a depression... but it’s a lot slower than Australia has known in the past and it’s a lot slower than recently.” REUTERS\n\nDecoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.\n\nShare with us your feedback on BT's products and services", "url": "https://wpnews.pro/news/reserve-bank-of-australias-deputy-governor-warns-of-higher-rates-if-inflation", "canonical_source": "https://www.businesstimes.com.sg/companies-markets/banking-finance/reserve-bank-australias-deputy-governor-warns-higher-rates-if-inflation-risks-crystallise", "published_at": "2026-08-19 04:26:33+00:00", "updated_at": "2026-08-19 04:41:23.404086+00:00", "lang": "en", "topics": ["artificial-intelligence"], "entities": ["Reserve Bank of Australia", "Andrew Hauser"], "alternates": {"html": "https://wpnews.pro/news/reserve-bank-of-australias-deputy-governor-warns-of-higher-rates-if-inflation", "markdown": "https://wpnews.pro/news/reserve-bank-of-australias-deputy-governor-warns-of-higher-rates-if-inflation.md", "text": "https://wpnews.pro/news/reserve-bank-of-australias-deputy-governor-warns-of-higher-rates-if-inflation.txt", "jsonld": "https://wpnews.pro/news/reserve-bank-of-australias-deputy-governor-warns-of-higher-rates-if-inflation.jsonld"}}