The Latest Breaking News from Michele Bullock

Days ago, at the start of last week, there was talk of a Reserve Bank rate hike.

Inflation has been stubborn but the Reserve Bank has much to consider for its cash rate announcement at 2.30pm on Tuesday

The ASX200 has closed 0.1 per cent lower as markets reflect on a hawkish undertone in the Reserve Bank's interest-rate decision.

These days every word of every statement from the Reserve Bank Governor Michele Bullock is pored over in minute detail – as is every word uttered at her press conference after each Reserve Bank board meeting.

Stalling progress on inflation has the central bank on high alert as political sparring continues over the impact of state and federal budgets on prices.

The central bank’s latest statement has some wondering if another rate rise is on the cards – but Bullock says the situation is ‘complex’

A June interest rate meeting comes as the federal government defends its budget management in an economy facing slow growth and persistent inflation.

The Reserve Bank of Australia is expected to hold interest rates at 4.35 per cent and keep its options open on its next move.

A pick up in investor lending and housing-related loans more generally comes even as interest rates stay elevated and cuts remain in the distant future.