Australia’s central bank this month considered whether a rise in interest rates might be needed in 2026, given a recent pick-up in inflation, but felt it would take a “little” time to know for sure. The board of the Reserve Bank of Australia (RBA) judged that inflation risks had increased following surprisingly high consumer price readings in October and Q3, minutes from the RBA’s December meeting showed. However, some of the lift in inflation could be due to volatile factors, and it would be important to see the Q4 figures due in late January. “Members discussed the circumstances in which … an increase in the cash rate might need to be considered at some point in the coming year,” the minutes showed. “While recent data suggested the risks to inflation had tilted to the upside, members felt it would take a little longer to assess the persistence of inflationary pressures.” CPI surged to 3.8% in October, while core inflation accelerated to 3.3%, above the RBA’s target band of 2% to 3%.
