RBA Warns of Inflation Risk

In a recent interview, Sarah Hunter, assistant governor of the Reserve Bank of Australia (RBA), expressed concern about the elevated risk of inflation expectations drifting higher. She emphasized that the RBA is closely monitoring medium and long-term expectations to prevent a sharp economic slowdown. Hunter acknowledged the impact of global events, such as the Middle East conflict, on inflation expectations and reassured that the RBA is committed to bringing inflation back down to its target of 2-3%. She also discussed the importance of sustainable economic growth and productivity in achieving this goal.