Aug 11, 2026 – 6.07pmMoney market traders scrambled on Tuesday to decipher whether the Reserve Bank of Australia’s next move on interest rates would be up or down, after softer economic forecasts were countered by a tough-talking Michele Bullock who said she “personally” believed another increase may be warranted.The RBA board voted to keep the cash rate steady at 4.35 per cent, in line with market expectations, and published new quarterly forecasts, which projected inflation would fall below 2.5 per cent within two years. Those forecasts pared future rate rise expectations until governor Bullock took to the podium to address the media.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Markets whipsawed by tough talking RBA governor
If Michele Bullock wanted to dial down bets that the cash rate had peaked, it worked a treat as her blunt message unwound a rally in bonds. Not everyone is convinced.














