Reserve Bank of Australia Deputy Governor Sarah Hunt said that although the country's real estate market is weakening, the central bank council still regards high inflation as a top priority, or further interest rate increases may be needed to deal with inflation. Hunter said at a conference in Sydney on Tuesday: “The board is very clear and cannot tolerate inflation above target levels for a long time. If the actual inflation trend is higher than our forecast, the Council will most likely have to resolve this issue by raising interest rates.” Affected by inflation and stronger economic data, the Reserve Bank of Australia is facing increasing pressure, and the market expects it to restart interest rate hikes as early as this month. The money market is betting that the probability of interest rate hikes after three weeks is 69%, and it has been fully calculated that the November interest rate meeting will raise interest rates. However, Hunter warned that the July inflation data is monthly and may fluctuate. Reserve Bank of Australia officials have made it clear that they prefer to refer to quarterly reports when judging the domestic inflation situation. It has been difficult for the Reserve Bank of Australia to bring inflation back to the median of the 2‑3% target range, and it is expected that this target will not be achieved until early 2028. If the cash interest rate were raised from the current 4.35% to 4.6%, the interest rate would reach its highest level in about 15 years.

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