Sydney, 22 October 2026 – Reserve Bank of Australia Deputy Governor Andrew Hauser has warned that the country’s inflation outlook is materially worse than projected in August, less than two weeks before the central bank’s November policy meeting. Australia’s consumer price index rose 4.0% in the year to August, while the cash rate stands at 4.60% after 100 basis points of tightening during 2026.
The warning matters to Asian investors because Australian interest rates influence the Australian dollar, regional bond markets, bank funding and demand for imports from Asia. Hauser confirmed that forecasts were still being finalised, so his remarks do not guarantee another rate increase. They do show that inflation risks have strengthened even as employment, housing and household confidence soften.
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