MNI BRIEF: Inflation Expectations Concerning - RBA's Harper

Reserve Bank of Australia board member Ian Harper said strong action is needed to prevent inflation expectations from becoming unanchored, noting measures of inflation expectations had risen.

Harper told an industry forum on Tuesday that persistent inflation remains a serious problem and that policymakers must ensure the effects of the fuel-price shock do not become embedded in the economy.

Harper's comments follow the RBA's latest 25 basis point rate increase on May 5, which lifted the cash rate to 4.35% and reversed the easing delivered in 2025. (See MNI RBA WATCH: 8-1 To Hike; Inflation-Growth Equation Worsens)

Harper said the bank's job is to keep inflation low and stable, arguing that price stability provides the best foundation for the economy and gives households and businesses confidence about future prices, wages and incomes, helping the RBA meet its inflation and employment objectives while supporting economic prosperity and welfare.