# RBA deputy signals harder choices on rates ahead

> Andrew Hauser warns inflation outlook has worsened and Australians are losing faith in the central bank's ability to control prices.
- Title: RBA deputy signals harder choices on rates ahead | Shortify
- Summary: Andrew Hauser warns inflation outlook has worsened and Australians are losing faith in the central bank's ability to control prices. Reserve Bank deputy…
- Keywords: reserve bank of australia, andrew hauser, interest rates, inflation, monetary policy, australian economy, news, world, RBA, deputy, signals, harder
- Source: the Guardian — https://theguardian.com/australia-news/2026/oct/21/odds-of-fifth-interest-rate-hike-this-year-likely-to-shorten-as-rba-deputy-warns-inflation-outlook-worsening
- Published: 2026-10-20T23:19:07+00:00
- Read time: 1 min
- Topics: reserve bank of australia, andrew hauser, interest rates, inflation, monetary policy, australian economy, news, world
## Deputy governor warns of worsening inflation
Andrew Hauser, Reserve Bank deputy governor, said the inflation outlook looks materially worse than expected two months ago.

> inflation has been high for a very long time now, and we are beginning to see some signs that some people in the community are not sure if we're going to bring inflation back into target at all
## Businesses see three point five percent as normal
Hauser said businesses were starting to see three point five percent inflation as the new normal. Removing entrenched inflation psychology could require higher interest rates, he warned.
## Economy shows mixed signals
While inflation is clearly too high, the economic picture is more mixed.High interest rates and petrol prices are weighing on activity.
## Board faces hard choices at November meeting
The RBA monetary policy board begins its next two day meeting on two November. Hauser said the board must choose between doing more to tackle inflation, which means weaker activity and a weaker labour market…

> Those are hard choices. They're not where we'd like to be ideally as the central bank, but I think that's the that's what we're facing into as we as we meet the week after next.
## Key takeaway

Reserve Bank deputy governor Andrew Hauser warned of worsening inflation and entrenched price expectations, signalling the board faces difficult trade-offs on interest rates at its November meeting.