RBA deputy flags 'hard choices' as inflation outlook worsens, fifth hike odds rise

RBA Deputy Governor Andrew Hauser warned that the inflation outlook has 'materially worsened' since two months ago, signaling the central bank may need to raise rates a fifth time despite a slowing economy. This marks a hawkish shift in rhetoric, increasing market odds of a hike on Melbourne Cup day. The key uncertainty is how the RBA balances inflation risks against labor market protection.