Bullock warns sticky inflation may stall RBA rate cuts

Reserve Bank governor Michele Bullock says she will need to rethink further interest rate cuts if inflation continues to surprise on the upside, as economists warn businesses could soon start passing higher labour costs through to consumers.

Announcing the unanimous decision to leave the cash rate on hold at 3.6 per cent, the RBA board said on Tuesday inflation was no longer slowing as quickly as it once was, and it would likely overshoot the central bank’s official forecasts for the current quarter.

Source: https://www.afr.com/policy/economy/rba-issues-inflation-warning-as-rates-hold-at-3-6pc-20250930-p5myyl