Fireside Chat with Andrew Hauser, Deputy Governor, at Australia’s Economic Outlook - 5 June 2026

Why It Matters

The remarks explain recent RBA reversals and signal that future policy will hinge on judgment about evolving demand, supply capacity and financial conditions, affecting borrowing costs for households and the economy. Clearer accountability and communication are crucial to maintain public trust in monetary policy.

Summary

RBA Deputy Governor Andrew Hauser defended the Bank’s 2025 interest-rate cuts as reasonable based on contemporaneous forecasts showing slowing growth and falling inflation, but said subsequent stronger-than-expected global growth, weaker domestic supply capacity and easy financial conditions pushed inflation back up and necessitated three rate rises this year. He stressed that monetary policy combines models and judgement — not a pure science — and doubted an AI could replace the policy board because it would over-rely on past data. Hauser emphasized central bank independence is a contract with the public mediated by government, requiring transparency and accountability. He also highlighted the importance of clear communication given the wide household exposure to interest-rate moves through mortgages.