Reserve Bank of Australia Assistant Governor (Economic) Sarah Hunter speaking at the Citi Australia & New Zealand Investment Conference 2025:

  • Recent data has been a little stronger than expected

  • Inflation likely to be stronger than forecast in Q3

  • Labour market and economic conditions might be tighter than assumed

  • Employment growth has slowed by more than expected

  • Uncertainty about the global outlook remains elevated

  • Board will adjust policy as appropriate as new information comes to hand

  • Slower productivity lowers economy’s speed limit and pace at which wages can grow

  • Slower productivity linked to lack of competition, business dynamism, and capital deepening

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RBA Assistant Governor Sarah Hunter said stronger-than-expected data and a likely hotter Q3 inflation print point to a still-tight economy, though job growth has cooled. Speaking at a Citi event, she highlighted slowing productivity as a structural drag that lowers Australia’s growth and wage “speed limits,” while reaffirming that policy will adjust as data evolve.

Hunter’s comments dampen expectations of near-term rate cuts, reinforcing the RBA’s cautious stance as inflation risks remain sticky. The focus on weak productivity signals limited policy room for aggressive easing even as growth moderates.