RBA warns Middle East conflict may lift inflation and hit growth outlook

Reinforces a hawkish bias at the margin, with AUD and front-end yields supported as the RBA signals willingness to tighten further if inflation expectations rise despite growth risks. RBA warns energy shock risks unanchoring inflation as conflict clouds outlookSummary:RBA flags Middle East conflict as dual growth-inflation shock Financial conditions already tightening Energy prices pose upside inflation risk Focus… RBA warns energy shock risks unanchoring inflation as conflict clouds outlook . Summary: . RBA flags Middle East conflict as dual growth-inflation shock Financial conditions already tightening Ener... RBA warns energy shock risks unanchoring inflation as conflict clouds outlook Summary: RBA flags Middle East conflict as dual growth-inflation shock Financial conditions already tightening Energy prices pose upside inflation risk Focus on preventing inflation expectations becoming unanchored Risk of more restrictive policy if expectations rise Short-run neutral rates pulled in both directions Longer conflict increases economic damage RBA remains data-dependent, balancing inflation and growth The Reserve Bank of Australia… For traders, releases like this can quickly shift rate expectations, currency direction, index futures and broad risk sentiment. Watch the next move in the dollar, front-end yields and index futures to see whether the market prices this release as a true surprise or only a passing headline.