RBA’s Hunter: Inflation fight is top priority, rate hike possible

Hunter's remarks signal that the RBA's hawkish bias is intact, with rate hikes still on the table despite one softer CPI print. The emphasis on low inflation tolerance suggests the board is prepared to prioritize price stability over growth, which could pressure rate-sensitive sectors and the Australian dollar. The key watchpoint is whether upcoming data confirms a sustained inflation downtrend or forces the board to act on its threat, as the market's pricing of rate cuts may be premature.