More rate hikes on the way as inflation target still too high

Professor Richard Holden from the University of New South Wales Business School says another rate hike is likely as inflation is still “well above” target and potentially won’t get to target by the end of 2027. “She [RBA Governor Michele Bullock] volunteered without anyone asking and said we didn’t talk about cutting rates at today's meeting; we did talk about potentially increasing them,” Mr Holden told News24 host Chris Kenny. “I read that as a hint to the market of, you know, don’t think there’s a rate cut coming, so I suspect the next move is up. “Inflation is well above target, and the RBA said today it won't even get back to target, if then by the end of 2027.”