Overview
- Sarah Hunter, speaking Tuesday at the Bloomberg Forum in Sydney, said higher oil costs will lift consumer prices quickly because the economy is running near its limits.
- The RBA has lifted the cash rate to 4.35% after three increases this year, fully reversing the cuts it delivered in 2025.
- Early signs of pass-through are visible as some companies add fuel surcharges and construction firms review prices on new contracts.
- The bank bases its outlook on a quick Gulf resolution, with a longer Hormuz closure seen lifting inflation further as Brent trades above $110 a barrel.
- Investors are parsing Hunter’s remarks and Tuesday’s board minutes for signals on a June move, with some banks tipping a hike while money markets assign low odds but still price in at least one rise by November.