Latest RBA clues leave door open for pre-Christmas rate hike

Fears for Australia’s battle with high inflation are rising, with the most recent discussions between Reserve Bank monetary policy board members showing a fifth 2026 rate hike is still on the table.Minutes from the September monetary policy board meeting were released on Tuesday, confirming all the upside risks to inflation the bank had identified either materialised or increased in the lead up to its latest interest rates decision.Reserve Bank governor Michele Bullock says upside risks are rising. Picture: NewsWire / Nikki ShortThe board opted unanimously to raise the cash rate to a 15-year high of 4.6% last month, citing particular concerns over the ongoing war in the Middle East, the cost of meeting the demand for AI, and supply imbalances in the economy.These are the ‘upside risks’ governor Michele Bullock has been speaking about in various media appearances – factors or events that place upwards pressure on inflation, which has been rising steadily in Australia for the last 12 months.Now, the RBA warns slower employment growth and economic demand are likely going to be needed to control inflation as these upside risks continue to mount.“Global energy prices were significantly ...