RBA's Hunter Signals Potential November Rate Hike as Oil Shock Drives Inflation Pressures

Reserve Bank of Australia Assistant Governor Sarah Hunter warned that policy tightening is not finished after four rate hikes this year brought the cash rate to a 15-year high of 4.6%. Hunter highlighted that domestic demand continues to outstrip sustainable supply capacity, while oil price shocks linked to the US-Iran conflict are filtering through supply chains and construction materials. Despite softening property prices and household pressures, the RBA downplayed recession risks and systemic mortgage distress ahead of its November 3 policy meeting and third-quarter trimmed mean inflation data projected at 3.6%.