Bitcoin 
Ethereum 
Tether 
XRP 
BNB 
USDC 
Solana 
JUSD 
TRON 
Lido Staked Ether 
Fireside chat with Andrew Hauser, Deputy Governor, at the Australian Chamber of Commerce and Industry (ACCI) Business Leaders’ Series, Sydney.-RBA Deputy Governor Hauser warned inflation remains too high and signalled the Bank will tighten further if required to return it to target.Earlier:Australia housing finance jumps in Q4 as markets weigh May RBA hikeSummary:Hauser says inflation remains too highSome pressures supply-driven, may persistRBA prepared to tighten if neededEconomy broader than resources sectorPolicy bias remains hawkishReserve Bank of Australia Deputy Governor Andrew Hauser reinforced the central bank’s tightening bias, warning that inflation remains too high and cannot be allowed to persist above target.Speaking on Australia’s economic outlook, Hauser acknowledged that some inflationary pressures are likely to unwind naturally, particularly those linked to earlier global supply disruptions. However, he cautioned that a portion of current price pressures appears tied to domestic supply constraints, which may prove more persistent and require a firmer policy response.Hauser emphasised that the RBA is prepared to “do what is needed” to bring inflation back within the 2–3% target band, reiterating the Board’s determination to anchor expectations and prevent high inflation from becoming entrenched. His remarks align with the RBA’s recent messaging that inflation, while easing from its peak, remains uncomfortably elevated.The deputy governor also pushed back against the notion that Australia’s economy is narrowly dependent on the resources sector. He noted that activity across many parts of the economy remains resilient, suggesting domestic demand has held up better than some had expected despite restrictive interest rates.The RBA lifted the cash rate to 3.85% earlier this month, citing renewed upside risks to inflation and evidence of ongoing capacity pressures. Markets currently lean toward another rate increase in coming months, with May seen as the more likely timing. A March move remains a lower-probability risk but would likely require a material upside surprise in inflation or wages data.Hauser’s comments underscore that while some disinflation is anticipated, policymakers remain vigilant. The message is clear: inflation must return sustainably to target, and the RBA stands ready to tighten further if progress stalls.
This article was written by Eamonn Sheridan at investinglive.com.
💡 DMK Insight
RBA’s Hauser just dropped a hint that more tightening could be on the table, and here’s why that matters right now: With inflation still elevated, traders need to brace for potential rate hikes, which could impact the Australian dollar and related assets. If the RBA moves to tighten, it could strengthen the AUD against major pairs, especially if markets are caught off guard. This is particularly relevant as we see housing finance jump in Q4, indicating a possible overheating in that sector. If the RBA’s actions lead to a cooling in housing, it could create ripple effects across the broader economy, affecting consumer spending and investment sentiment. But here’s the flip side: if the market has already priced in these potential hikes, we might see a muted reaction. Keep an eye on key levels in AUD/USD; a break above recent highs could signal bullish momentum, while a failure to hold could lead to a quick reversal. Watch for any upcoming economic indicators that might sway the RBA’s decision-making, particularly in the housing market, as they could provide clues on the timing and magnitude of any rate changes.
📮 Takeaway
Monitor AUD/USD closely; a break above recent highs could indicate bullish momentum if the RBA tightens further.
