RBA ‘More Worried’ About Inflation Expectations, Hunter Says

Australian policy makers are increasingly concerned about inflation expectations becoming unanchored, a senior Reserve Bank official said, as the latest oil-price shock from the Iran war hits at a time when underlying price pressures from the previous inflation surge have yet to fully subside.

Reserve Bank Assistant Governor Sarah Hunter highlighted the danger of rising inflation expectations in a speech to a Bloomberg Forum for Investment Managers on Tuesday, focusing on persistent price pressures in the economy both before and after the energy shock triggered by the war in Iran.