Aura Group flags higher-for-longer RBA risk as oil shock lifts inflation pressure
TLT•Inflation pressures remain elevated
Underlying inflation remained above the RBA’s 2%-3% target band, while Brent crude rose above USD 108 on renewed Iran conflict escalation.
Money markets priced about an 80% chance of a fourth rate increase at the September meeting. Markets fully priced a move to 4.85% by March, with the cash rate seen near 5% by mid-2027.
Aura Group sees higher-for-longer RBA risk
Aura Group analysis flagged a rising risk of higher-for-longer Australian rates following hawkish RBA commentary in September 2026.
Assistant Governor Sarah Hunter cited resilient household spending, firm business investment and constrained supply capacity as inflation risks.




