SYDNEY — Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser has delivered a hawkish assessment of national price pressures, signaling that a cash rate increase at the central bank's upcoming November monetary policy meeting is looking increasingly possible as global energy shocks and persistent domestic inflation worsen economic forecasts.

Addressing the Citi Australia and New Zealand Investment Conference in Sydney, Hauser warned that key macroeconomic conditions have deteriorated significantly compared to the central bank's baseline projections issued in August. Citing escalating geopolitical instability across the Middle East, surging crude oil benchmarks, and pass-through costs from global technology infrastructure, the RBA second-in-command emphasized that central bankers face a "materially worse" inflation environment than previously anticipated—fueling financial market speculation of a potential interest rate hike on Melbourne Cup Day.

Middle East Shocks, Tech Spillovers, and Deteriorating Projections

The Deputy Governor's remarks mark a notable shift in tone, challenging financial market consensus that had previously priced in a prolonged pause or eventual rate cuts.

Hauser highlighted two primary external........

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