Bank of Australia Governor Michelle Bullock made tight remarks at a press conference held after the bank made a policy decision to keep interest rates unchanged. She clearly ruled out the possibility of further interest rate cuts and said the central bank committee is concerned about inflation. Bullock added that the 2026 policy debate could be “long standing still” or looking into interest rate hikes. Bullock is generally reluctant to provide forward-looking guidance, but now it appears she has put that aside. Obviously, the committee has little room for maneuver. If the third-quarter inflation data released in January shows any dangerous signs, it could trigger interest rate hikes in February.

Bank of Australia Governor Michelle Bullock made tight remarks at a press conference held after the bank made a policy decision to keep interest rates unchanged. She clearly ruled out the possibility of further interest rate cuts and said the central bank committee is concerned about inflation. Bullock added that the 2026 policy debate could be “long standing still” or looking into interest rate hikes. Bullock is generally reluctant to provide forward-looking guidance, but now it appears she has put that aside. Obviously, the committee has little room for maneuver. If the third-quarter inflation data released in January shows any dangerous signs, it could trigger interest rate hikes in February.