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AAP
AAP
Jacob Shteyman

RBA ready to shift up a gear as the neutral rate rises

RBA Reserve Bank Inflation Christopher Kent United States Economy Jim Chalmers Michele Bullock Susie Dodds Iran
RBA governor Michele Bullock has announced two rate rises in 2026 and is expected to announce more. (Susie Dodds/AAP PHOTOS)

The Iran war could push up the "neutral" interest rate level, requiring even more rate rises to get inflation under control, a Reserve Bank official says.

As the conflict in the Middle East sent oil prices and economic uncertainty sky-high, the RBA must keep a lid on inflation expectations, assistant governor Christopher Kent said in an address on Thursday.

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