RBA says rate hikes ‘working’ ahead of key inflation data

The Reserve Bank of Australia says higher interest rates are “working” to cool the economy, but households are unlikely to see any mortgage relief in the near term.The minutes of the RBA’s August rates decision confirm a rate cut was not even part of the discussion when the board opted to hold interest rates steady at 4.35% earlier this month.Instead, the central bank remains on high alert for any signs its inflation forecasts could be pushed off course and force it to deliver another rate hike.“The board will remain focused on its mandate to deliver price stability and full employment and will continue to do what it considers necessary to achieve that outcome, including increasing the cash rate target if upside risks materialise,” the minutes said on Tuesday.At the top of its watch list is the ongoing Middle East conflict, which risks pushing up the cost of everyday items such as petrol and groceries.It is also monitoring a massive data centre boom currently sweeping the country, which could push up labour and construction costs in a sector already stretched for workers.The RBA minutes, released Tuesday, have revealed several factors the RBA is monitoring closely. Picture: GettySp...