Why the market thinks Michele Bullock is bluffing on rate hikes (opens original article in a new tab)

The RBA governor's statements on potential rate hikes have not convinced the market, which remains skeptical about further increases, with major banks predicting rate cuts in 2027.

• Reserve Bank governor Michele Bullock emphasized that the RBA will take necessary actions to achieve price stability, including potential further rate hikes.
• Despite the RBA's statements, market odds for an August rate rise remain in the high-20s, with major banks predicting rate cuts in 2027.
• Economists suggest the Australian economy may be entering a downturn, affecting consumer and business confidence and the housing market.