RBA Rate Decision Passed Unanimously; More Tightening Possible

The unanimity matters less than the RBA's admission that its August assumptions have already been overtaken: wider Middle East conflict and energy prices far above forecast levels are exactly the kind of supply shock that makes domestic rate settings hostage to geopolitics. For Australian borrowers and rate-sensitive sectors, the bar to further tightening has effectively fallen, since the bank has pre-committed to acting if inflation proves sticky. The open question is whether energy-driven inflation feeds into expectations or fades as a level effect, which will decide if this is a hawkish pause or a genuine tightening bias.