The deputy governor of the Reserve Bank of Australia said on Tuesday that the central bank would discuss the case for raising interest rates at its monetary policy meeting this month, noting that inflation remains high and risks continue to lean to the upside.
Andrew Hauser, in an interview with the Australian Broadcasting Corporation, said he had become more concerned about inflation after witnessing the impact of data centers during a recent visit to the United States, according to Reuters.
Hauser explained that the key question facing policymakers is whether the three interest rate hikes approved so far this year are sufficient to contain inflation, or if further action is needed.
He added that the bank’s board would discuss the case for raising interest rates at its next meeting, scheduled for September 28–29.
Responding to a question on whether a rate hike was “inevitable,” Hauser said: “I can tell you today what I think I might want to do, but there are nine people voting on the decision, so it would be madness to take my advice.”
Market pricing currently indicates a 68 percent probability of a 25 basis point interest rate hike to 4.60 percent on September 29, after July inflation data came in higher than expected. Pricing also suggests a 60 percent chance of interest rates reaching 4.85 percent next year.
Hauser said the central bank has not yet reached a stage requiring sharp interest rate hikes to bring inflation back to its target range of 2–3 percent, but he noted that prolonged inflation above target may ultimately require a stronger monetary policy response.
He added: “Inflation has remained above target for a long time, and at some point we will have to say that this period has become long enough. We will raise interest rates to levels higher than we would need under normal circumstances, but we have not yet reached that stage.”
U.S. President Donald Trump threatened to target sales of Canadian aircraft manufacturer Bombardier, just hours after Canada imposed tariffs on a range of U.S. products amid a trade dispute between the neighboring countries.
The U.S. president wrote on his Truth Social platform: “We will no longer allow Bombardier aircraft to be sold in the United States,” without clarifying how this would be achieved.
He added: “If they want our market, they must manufacture here and stop treating America like a cash cow.”
In January, Trump threatened to revoke airworthiness certificates for aircraft manufactured in Canada, particularly Bombardier planes, and impose “50 percent tariffs on all aircraft sold in the United States,” expressing his frustration with Ottawa’s “refusal” to grant airworthiness certificates to U.S. aircraft.
Bombardier responded by reminding that its aircraft “provide tens of thousands of jobs in the United States thanks to the company’s growing U.S. presence, as well as through its supply chain, which includes approximately 2,800 U.S. companies spread across 47 states.”
The company added in a statement that “Bombardier aircraft are manufactured using components produced in the United States, such as engines, avionics systems, and many other major systems supplied by major U.S. companies,” arguing that “the U.S. aerospace sector is clearly a winner in terms of trade and exports.”
Since his return to the White House in January 2025, Canada has become a primary target of the trade war waged by the Republican president, who has repeatedly expressed his desire to make it the "51st state" of the United States.
Hours before his threats against Bombardier, Trump posted a map on Truth Social showing the American flag covering all of North America, Mexico, the Caribbean region, as well as Greenland—a self-governing Danish territory he seeks to annex to the United States—and Iceland.
The Canadian tariffs, ranging from 15% to 25% and 50%, scheduled to take effect on Tuesday, affect American goods worth nearly $20 billion, including steel, dairy products, electronics, and paper.
According to Ottawa, this amount equals the value of Canadian goods subject to 50% U.S. tariffs since August 22.
The trade dispute between the two countries has reached an unprecedented level since Canadian Prime Minister Mark Carney suspended negotiations with the White House on August 21.
Carney accused Washington of attempting to impose an "unfair" agreement aimed at turning Canada into a "vassal state" and "destroying" its industry, particularly the automotive sector.
