RBA Warns Tight Labour Market Signals Persistent Inflation

RBA official Sarah Hunter says Australia's labour market is stable but tight. This condition fuels persistent inflation and justifies the recent rate hike.

A senior official from the Reserve Bank of Australia AUAU stated today that the Australian labour market has stabilised and remains tight, a condition the central bank views as consistent with persistent inflationary pressures. In a statement released on February 12, 2026, Assistant Governor Sarah Hunter provided this assessment of the Australian economy, noting that while the market has reached a level of stability, the ongoing tightness continues to influence the national policy path.
A worker adjusts the electrical wiring of traffic lights in central Sydney, Australia, June 16, 2017. REUTERS/Steven Saphore
A worker adjusts the electrical wiring of traffic lights in central Sydney, Australia, June 16, 2017. REUTERS/Steven Saphore
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