Reserve Bank signals potential August rate rise amid inflation and wage warnings

The Reserve Bank of Australia has signalled that a rate rise could be back on the table for its August meeting, as fresh warnings emerge about stubborn inflation and rising wage pressures. Governor Michele Bullock warned that Australia's living standards are at risk if inflation remains above target, while Treasury has cautioned that soaring oil prices could further destabilise the economy. The signals come after months of speculation that the central bank's tightening cycle had ended, but new data shows inflation is still hovering well above the 2-3% target band. Households and businesses now face the prospect of another rate hike, which would extend what many analysts have called 'interest rate purgatory'. The RBA has kept rates on hold since November, but Bullock's recent comments indicate the board is not done yet. Meanwhile, Treasury's warnings about the impact of war and oil price shocks add another layer of uncertainty. For mortgage holders, a quarter-point rise would add roughly $100 to monthly repayments on a $600,000 loan. The decision will hinge on the next inflation and wage data due before the August meeting. If inflation proves sticky, especially in services, the RBA may feel compelled to act.