'People are furious': RBA deputy governor says more needs to be done on inflation

The Reserve Bank of Australia’s deputy governor has issued a stern warning to the nation, indicating that further interest rate hikes remain a distinct possibility if the current inflationary pressures do not subside. Addressing the growing discontent among the public, the central bank’s second-in-command acknowledged that while ‘people are furious’ with the rising cost of living, the RBA’s primary mandate remains the stabilisation of the economy through rigorous monetary policy.

This latest hawkish pivot from Martin Place comes at a critical juncture for Australian households already reeling from previous adjustments. Despite a slight softening in some sectors, service-side inflation remains stubbornly high, complicating the board’s efforts to bring the Consumer Price Index back within the desired two-to-three per cent target range. Market analysts suggest this rhetoric serves as a clear signal that the central bank is prepared to prioritise long-term fiscal health over short-term political or social pressure.

“The RBA is currently walking an economic tightrope, where the risk of entrenched inflation outweighs the immediate hardship of a cooling credit market, leaving the board with little room for sentimentality.”

As the board prepares for its upcoming deliberations, the deputy governor’s remarks underscore the volatility of the post-pandemic recovery. For millions of mortgage holders across the country, the message is one of continued vigilance. The bank has made it clear that until the scourge of inflation is decisively brought under control, the prospect of further financial tightening will continue to loom large over the Australian economic landscape.