John Kehoe

Why the RBA is on alert but not alarmed about its big inflation miss

The Reserve Bank won’t be cutting interest rates any time soon after one of its worst forecasting errors on inflation since the 1990s.

John KehoeEconomics editor

Updated Nov 4, 2025 – 5.52pm, first published at 3.55pm

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Follow our live coverage of the RBA’s interest rates decision

The Reserve Bank of Australia has suffered one of its worst forecast errors since the inflation-targeting era began in 1993, but governor Michele Bullock is only alert and not alarmed about the resurgence in price pressures.

John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury.