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The Guardian - AU
The Guardian - AU
National
Patrick Commins and Luca Ittimani

Reserve Bank governor denies inflation is ‘taking off’ amid fears of fresh rate hikes

A ‘For Sale’ sign is seen near a house in Canberra, Wednesday, February 25, 2026. (AAP Image/Lukas Coch) NO ARCHIVING
Experts say rate hikes in May and August could entirely reverse the monetary policy relief the RBA delivered in 2025 and return the cash rate to its previous peak of 4.35%. Photograph: Lukas Coch/AAP

The Reserve Bank governor has denied inflation is “taking off” after new data showed price rises had persisted into 2026 and boosted bets on two more interest rate hikes.

Annual inflation stayed at a high 3.8% in January, as the end of government subsidies drove electricity costs up by 19% in the month and left power bills nearly a third higher than they were a year earlier.

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