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Michele Bullock has refused to be drawn on whether yesterday's inflation data has made a November interest rates rise more likely, but has delivered a worrisome warning to the nation's renters.
In her first appearance in front of Senate estimates as RBA governor, Bullock was asked whether she thought annual rental inflation would hit 10 per cent.
"We see it topping out around about 10 per cent in the CPI and then from there easing," she said, adding that peak would likely be reached in the next two quarters.
READ MORE: Big four banks predicting November rate hike
Annual rental inflation currently sits at 7.6 per cent.
While the news for renters was unpleasant, mortgage holders will have to wait until Melbourne Cup day to find out whether their repayments will be pushed up, with Bullock keeping tight-lipped on the chances of a 13th interest rate rise next month.
She said yesterday's inflation data – which was higher than forecast – wasn't unexpected.
"We thought it was going to be about where it came out," she said.
"(There were) no surprises in the sense that some of the things that were important (in driving inflation for the last quarter) were fuel prices.
"We all know that fuel prices have been rising. So it wasn't a surprise."
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While repeating her message that the RBA was open to increasing rates if inflation doesn't come down quickly enough, Bullock said it was too early to know if yesterday's data justified a rise.
"We're still analysing the number… we have to look at whether or not it's material enough to change our views on monetary policy," she said, adding a rates hike could still be required on November 7.
"We're looking at some of the more persistent parts of inflation and asking ourselves 'Are there signs that those might be coming down in the future?'" she said.
"So yes, we are wary and we don't know if the job is done yet.
"We've made that very clear, even though we haven't raised interest rates since our last interest rate rise in June.
"We've made it very clear that we might need to go again. We have we had not ruled that out, and we're in the same position."
