On Wednesday, RBA Governor Michele Bullock effectively opened the door to possible future hikes, emphasising that the central bank is fully alert to persistent inflation pressures and is prepared to respond. The easing bias that coloured earlier RBA rhetoric has now been removed. While the RBA still expects inflation to ease back toward target in 2H26, that outlook could change quickly if the Q4 CPI print (due 28 January) lands materially above 3.3%. It’s hard to argue the Australian economy is overheating, but it’s certainly bubbling along nicely, and inflation is now firmly outside of the RBA’s target band and ... (full story)