Reserve Bank of Australia Governor Michele Bullock said on September 22 that some upside risks to inflation may be materialising as energy prices remain high and domestic demand stays stronger than supply.
Bullock told a business lunch that the prolonged Middle East conflict and elevated energy costs were among the factors the central bank was monitoring closely. She also pointed to continued excess demand in the Australian economy.
The RBA governor stressed that she was not signalling the outcome of the September 29 policy meeting. Her comments were intended to highlight risks rather than pre-announce an interest-rate decision.
The RBA has raised its cash rate by 75 basis points since February to 4.35%, while core inflation remains above the bank's 2% to 3% target range.
Assistant Governor Sarah Hunter separately said rates might need to rise again if inflation does not moderate.
Financial markets have increased expectations of another rate increase, but those expectations are market pricing rather than a confirmed central-bank decision.