RBA Open For Further Rate Hike, Says Bullock

(RTTNews) - Reserve Bank of Australia Governor Michele Bullock said the bank is open for further interest rate hike.

"The Board hasn't ruled out a further increase in interest rates but neither has it ruled it in," she told parliament on Friday.

"However, given the substantial costs to the economy and the Australian people of continued high inflation, the Board is committed to bringing inflation back to target in a reasonable timeframe", Bullock added.

The governor observed that although there are some encouraging signs, inflation challenges is not over. "An inflation rate with a '4' in front of it is not good enough and still some way from the midpoint of our target," said Bullock.

At the February meeting, the RBA had maintained the cash rate target at 4.35 percent. The RBA's announcement that another rate hike cannot be ruled out pushed forward the market expectations about the timing of the policy easing to the second half of the year.