RBA's Deputy Governor Hauser says inflation in Australia is too high and Australia's supply capacity is constrained, adds energy price spikes has been a big income shock for Australia

The remarks from RBA's Deputy Governor Hauser highlight significant inflationary pressures and supply constraints in Australia, indicating a challenging economic landscape. This suggests a hawkish shift in the central bank's stance may be needed to combat rising inflation, which could influence market expectations for rate increases. Given the impact of energy price spikes, we may also see implications for the AUD and fixed income markets as investors reassess their outlooks.