RBA governor Michele Bullock has refused to rule out back-to-back interest rate rises, saying the bank is determined to force inflation back into target.
The governor of the Reserve Bank of Australia, Michele Bullock, continued taking questions from journalists in Sydney after the cash rate was lifted to 3.85%.
Bullock acknowledged the decision had “come across quite negatively” for mortgage holders but said Australia was “actually in a really good position”.
She declined to provide forward guidance on whether rates would rise again next month, saying she could not confirm another hike.
Bullock said the RBA board was “determined” to return inflation to its 2–3% target range.
The consumer price index rose 3.8% in the 12 months to December 2025, up from 3.4% in the year to November.
Bullock said the board had not ruled out further rate rises but warned aggressive tightening could damage employment and the broader economy.
She said inflation control was “not a science” but “a bit of an art”, and that the strategy remained balancing lower inflation with sustaining full employment.
