Hauser Warns Australia’s Inflation Outlook Has Worsened Ahead of November RBA Meeting

Updated: 22 October 2026, 5:20 a.m. AEDT

Reserve Bank deputy governor Andrew Hauser warned in Sydney on Wednesday, 21 October, that Australia’s inflation outlook had become “materially worse” than the bank’s August forecast, as policymakers prepare for their November interest-rate meeting.

Speaking at Citi’s Australia and New Zealand Investment Conference, Hauser said the RBA was still finalising its forecasts. The bank’s published transcript identifies higher oil prices, the AI and technology investment boom, and domestic capacity constraints as continuing sources of inflation pressure.

Hauser said oil prices were about a third above the level assumed in August. He also pointed to rising technology prices and Australian data-centre construction, while services inflation remained sensitive to limits on the economy’s capacity.

He warned that business surveys and the RBA’s liaison work showed some companies were beginning to regard inflation of 3–3.5 per cent as normal. At the same time, he acknowledged slowing consumption, weaker household confidence and an easing labour market.

The choice facing the board, he said, was whether further tightening was needed to contain inflation despite its cost to activity and jobs, or whether holding rates would better protect employment while risking more persistent price pressures.

ABC News reported that the next rate decision and quarterly economic forecasts are due on 3 November. Hauser’s remarks were a warning about the outlook; they did not announce a rate increase or settle that decision.