Inflation in Check for Now, But Reserve Bank of Australia Says Risks Remain

Australia’s central bank is keeping a close eye on inflation risks, even as recent data shows price growth remains within target.

Reserve Bank of Australia (RBA) Governor Michele Bullock warned that high labor costs and weak productivity could still push inflation higher. While the board is aligned on direction, members were divided on timing, with some favoring an immediate rate cut.

Bullock emphasized the need for more data before making further moves and highlighted global uncertainty—especially from ongoing trade tensions—as a key concern.