Asian Markets Rise as Oil Prices Fall Ahead of Fed, BOE, BOJ Meetings 
US Dollar Posts Best Weekly Gain in Over a Month as Middle East Tensions Boost Safe-Haven Demand 
Houthi Attacks on Saudi Oil Sites Raise Fears of Wider Middle East Conflict Despite U.S. Strike Pause 
BOJ Seen Holding Rates at 1% While Keeping Inflation Risk Warning 
US Stock Futures Slip Ahead of Big Tech Earnings, Fed Decision as Nvidia Leads Chip Selloff 
Dollar Holds One-Month High as Fed Rate Hike Bets Grow, Yen Remains Under Pressure 
Japan PM Sanae Takaichi Unveils Growth Plan as BOJ Independence Concerns Lift Bond Yields 
South Korean Chip Stocks Plunge as AI Spending Concerns and China Competition Shake Market 
Global Leaders Push Back as Trump Imposes New Forced Labor Tariffs 
Oil Prices Extend Slide as U.S.-Iran Talks Ease Middle East Supply Fears 
Trump Says No Decision on Major Iran Strikes as U.S.-Tehran Talks Intensify 
Asian Stocks Rise as Oil Falls, Fed and Big Tech Earnings Take Center Stage 
Wall Street Ends Mixed as Fed Decision, Earnings and Tariffs Keep Investors on Edge 
Japan Services Producer Prices Rise 3.2% in June, Supporting BOJ Rate Hike Expectations 
Reserve Bank of Australia (RBA) Governor Michele Bullock warned on Tuesday that underlying inflation remains too high and said the central bank is prepared to raise interest rates again if necessary to bring price growth back within its 2%–3% target range.
Speaking in Sydney, Bullock said policymakers are still assessing whether the three rate hikes implemented between February and May are sufficient to curb inflation. Although the full effects of tighter monetary policy have yet to flow through the economy, she stressed that inflationary pressures remain persistent and could intensify as higher global oil prices linked to the Iran conflict ripple through businesses and consumers.
Bullock said Australia may require a further slowdown in domestic demand to ensure inflation returns sustainably to target. She also noted that the labor market needs to cool further to ease price pressures.
"The Board is prepared to act as required to achieve its mandate, including by increasing the cash rate further if needed," she said.
The RBA’s hawkish stance has reinforced market expectations for another interest rate increase later this year, which would lift the cash rate to 4.6%. Financial markets continue to fully price in one additional hike in 2026, while assigning roughly a 30% probability of a move at the August policy meeting.
Bullock also highlighted the risks posed by supply-side shocks, pointing to rising oil prices following the conflict involving Iran. She cautioned against underestimating the broader economic effects, noting that while headline inflation has not risen as sharply as initially feared, businesses are increasingly indicating they plan to pass higher operating costs on to consumers.
She emphasized that the RBA’s priority is to keep inflation expectations firmly anchored and prevent temporary price shocks from becoming embedded in the economy.
While Australia’s economy is slowing broadly in line with the central bank’s expectations, Bullock said the housing market has weakened more than anticipated. The RBA is closely monitoring how falling home prices could influence household spending, consumer confidence, and investment decisions as it weighs the outlook for future monetary policy.
