Back to Articles
Reserve Bank Deputy Governor Andrew Hauser Warns of Further Interest Rate Rises if Inflation Risks Materialise

Australian Financial Review

ENRICHED

Details

Date Published
19 Aug 2026
Priority Score
2
Australian
Yes
Created
20 Aug 2026, 06:03 am

Authors (1)

Description

Deputy governor Andrew Hauser warns the central bank will be forced to raise rates again if inflation risks materialise, as private sector wage growth fell.

Summary

Reserve Bank of Australia Deputy Governor Andrew Hauser identifies mammoth investment in artificial intelligence infrastructure as a significant structural risk to long-term inflation and productivity growth. The RBA's focus on AI reflects growing concern within central banking circles about the macroeconomic shocks caused by massive capital allocation toward frontier compute and its impact on the national economy. While the article primarily addresses monetary policy, it highlights how AI deployment is now considered a first-order variable in Australian economic stability and resource allocation. This underscores the necessity of aligning AI infrastructure expansion with broader national governance frameworks to mitigate unforeseen economic volatility.

Body

PolicyEconomyInflationPrint articleGrace LaganMarkets reporterUpdated Aug 19, 2026 – 5.32pm, first published at 12.59pmReserve Bank of Australia deputy governor Andrew Hauser has warned the central bank will not hesitate to raise interest rates if key inflation risks materialise, as the government acknowledged rising costs were eating into wage gains.Speaking in Brisbane on Wednesday, Hauser warned the ongoing war in Iran, mammoth investment in artificial intelligence infrastructure and stagnant productivity growth in Australia were key risks for higher inflation.Loading...SaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleRead MoreInflationRBAMichele BullockNational Australia BankInterest ratesWage growthAustralian economyFetching latest articles