What exactly did RBA deputy governor Andrew Hauser say?

Speaking on the ABC's 7.30 program on September 15, 2026, deputy governor Andrew Hauser said the economy has 'one big problem and that's inflation' and that 'We will raise interest rates further than otherwise we would need to do so'. He added that 'People are furious about inflation', citing an RBA community survey in which two-thirds of respondents put inflation in their top three concerns. Hauser listed three upside risks: the Middle East crisis, an unexpected global AI boom, and weak supply potential (ABC 7.30, Sep 15, 2026).

How big is Australia's data-centre investment boom?

CEDA chief economist Julie Toth notes business investment has reached 12.6% of GDP — the highest share in more than a decade, since the mining boom. The boom is driven by information, media and telecommunications investment: data centres, cloud and AI infrastructure, concentrated in Western Australia and Queensland. RBA chief economist Sarah Hunter said business investment has grown at double-digit rates for 9-12 months and that a 'decent chunk of that is data centres' (CEDA + AFR, Sep 16, 2026).

When will the RBA cash rate peak?

The RBA has lifted the cash rate three times in 2026 to 4.35% and held at the last two meetings. Markets price roughly 75% odds of a hike at the September 28-29 meeting to 4.6% — a 15-year high. Citi's Faraz Syed sees the cash rate peaking at 4.85%, describing a two-speed economy in which a deepening housing correction is offset by an AI-related investment boom that adds to capacity constraints. All five of Australia's largest lenders expect one more rise before year-end (brokernews.com.au, Sep 16, 2026).

When will the RBA start cutting rates?

Citi does not expect the first cut until Q4 2027, reflecting an investment boom that keeps demand pressure elevated even as the housing correction deepens. The view is more hawkish than the market average but consistent with the RBA's own framing: deputy governor Hauser explicitly tied future rate rises to supply-side pressures including the AI investment boom, and July trimmed-mean inflation of 3.6% remains well above the 2-3% target band (Citi via nine.com.au, Sep 16, 2026).

What did the RBA community survey find about inflation?

The survey found two-thirds of Australians put inflation in their top three concerns, and public understanding of how monetary policy works is poor: only 25% of respondents correctly said higher rates bring inflation down, while more than half said higher rates make inflation higher. Hauser has argued this misperception is itself a policy problem, because households that believe rate rises cause inflation respond to tightening with anger rather than reduced spending (ABC 7.30, Sep 15, 2026).

Australia's AI Data Centre Boom Is Pushing Rates Higher

Q: Why would AI data centres push Australian interest rates higher?

Data-centre construction pulls workers, materials and capital into projects that raise measured demand faster than supply. RBA chief economist Sarah Hunter told the AFR property summit that workers are being 'sucked in, at inflated wages, to build new data centres', adding cost pressure across the wider construction sector. Because the RBA targets inflation of 2-3% and July CPI printed 3.5% headline and 3.6% trimmed mean, an investment boom that competes for scarce labour and materials makes the RBA lean harder on rates than it otherwise would (AFR, Sep 16, 2026).

Q: How is the AI boom like Australia's mining boom?

CEDA's Julie Toth draws the parallel directly: business investment at 12.6% of GDP is the highest share since the mining boom, and like the mining boom it creates a two-speed economy. The benefits of data-centre investment are largely captured by overseas shareholders of multinational operators, while the costs — higher interest rates and slower growth in other sectors — are borne domestically. The ABC's analysis adds that rate rises cannot fix supply-side problems, likening aggressive tightening into a supply shock to bloodletting (CEDA + ABC, Sep 15-16, 2026).

Quick Answer

RBA deputy governor Andrew Hauser said on September 15, 2026 that Australia's AI data-centre investment boom means 'We will raise interest rates further than otherwise we would need to do so' (ABC 7.30, Sep 15, 2026). Business investment has hit 12.6% of GDP — the highest share since the mining boom (CEDA, Sep 2026) — and markets now price roughly 75% odds of a hike at the September 28-29 meeting to a cash rate of 4.6%.

Last verified: Sep 16, 2026.

At a glance

Hauser warning: rates will rise 'further than otherwise' because of the AI investment boom (ABC 7.30, Sep 15, 2026)
Business investment: 12.6% of GDP — highest since the mining boom (CEDA, Sep 2026)
July CPI: 3.5% headline, 3.6% trimmed mean — above the 2-3% target (RBA, Sep 2026)
September meeting: ~75% priced odds of a hike to 4.6% — a 15-year high
Citi's path: peak 4.85%, first cut not until Q4 2027
Geography: data-centre boom concentrated in Western Australia and Queensland

The Hauser warning

The RBA has explicitly linked the data-centre boom to tighter monetary policy. Speaking on the ABC's 7.30 program, deputy governor Andrew Hauser said the economy has 'one big problem and that's inflation' and that 'We will raise interest rates further than otherwise we would need to do so'. He listed three upside risks to inflation: the Middle East crisis, an unexpected global AI boom, and weak supply potential (ABC 7.30, Sep 15, 2026).

Hauser also flagged the political dimension: 'People are furious about inflation.' An RBA community survey found two-thirds of respondents put inflation in their top three concerns, and more than half mistakenly believe higher rates make inflation higher — only 25% correctly said higher rates bring inflation down (ABC 7.30, Sep 15, 2026). The RBA is tightening into a supply-shocked economy where the public does not believe the medicine works.

The new mining boom

The investment numbers echo the 2000s resources boom. CEDA chief economist Julie Toth notes business investment has reached 12.6% of GDP — the highest share in more than a decade, since the mining boom — driven by information, media and telecommunications: data centres, cloud and AI infrastructure, concentrated in Western Australia and Queensland (CEDA, Sep 2026).

RBA chief economist Sarah Hunter told the AFR property summit that workers are being 'sucked in, at inflated wages, to build new data centres', adding cost pressure across the wider construction sector. Business investment has grown at double-digit rates for 9-12 months, and a 'decent chunk of that is data centres' (AFR, Sep 16, 2026). Like the mining boom, the pattern is two-speed: the benefits are largely captured by overseas shareholders of multinational operators, while the costs — higher rates and slower growth in other sectors — are borne domestically (CEDA, Sep 2026).

The ABC's own analysis is blunt: rate rises do not fix supply problems, and aggressively tightening into a supply shock has an old name — bloodletting (ABC, Sep 15, 2026). July CPI printed 3.5% headline and 3.6% trimmed mean, both above the RBA's 2-3% target band, with the AI boom adding demand pressure precisely where supply is tightest: construction labour and materials.

What it means for rates and households

The rate path is now unambiguously higher for longer. The RBA lifted the cash rate three times in 2026 to 4.35% and held at the last two meetings, but markets price roughly 75% odds of a hike at the September 28-29 meeting to 4.6% — a 15-year high. All five of Australia's largest lenders expect one more rise before year-end: NAB and Macquarie tip September; ANZ, CBA and Westpac tip November (brokernews.com.au, Sep 16, 2026).

Citi's Faraz Syed describes a two-speed economy: a deepening housing correction offset by an AI-related investment boom that adds to capacity constraints, with an anemic productivity backdrop and elevated oil prices keeping inflation sticky. Citi sees the cash rate peaking at 4.85% and does not expect the first cut until Q4 2027 (nine.com.au, Sep 16, 2026). For mortgage holders, that extends the period of highest repayments since the early 1990s; for the data-centre builders, it raises the hurdle rate on exactly the projects causing the pressure.

Indicator	Latest reading	Implication
Cash rate	4.35% after three 2026 hikes	Held last 2 meetings
September 28-29 odds	~75% priced for a hike	To 4.6% — 15-year high
July CPI	3.5% headline / 3.6% trimmed (RBA, Sep 2026)	Above 2-3% target
Business investment	12.6% of GDP (CEDA, Sep 2026)	Highest since mining boom
Citi peak forecast	4.85%	First cut Q4 2027
Lender consensus	All five majors: one more rise	Sep (NAB, Macquarie) or Nov (ANZ, CBA, Westpac)

What enterprise buyers should do next

Three actions for businesses exposed to the AI-infrastructure cycle.

Re-underwrite against 4.85%. Data-centre developers and tenants should model project economics at Citi's 4.85% peak rather than the current 4.35%, because the boom itself is part of what pushes the cash rate there (Citi, Sep 2026).
Lock construction contracts early. With workers being pulled into data-centre projects at inflated wages (AFR, Sep 16, 2026), any business building in WA or Queensland should expect cost escalation and secure fixed-price or capped contracts where possible.
Plan funding around Q4 2027. Boards assuming rate relief in 2027 should reset: Citi's first-cut call is Q4 2027, and the two-speed economy means domestic-facing divisions face tighter conditions even while the AI-investment division grows.

What to watch next

Three datapoints will define the trajectory. First, the RBA's September 28-29 decision and statement language — whether the bank explicitly names AI investment as a persistent upside risk. Second, the Q3 CPI print in October, which determines whether trimmed-mean inflation breaks back toward the 2-3% band. Third, the pipeline of announced data-centre projects in WA and Queensland, because each new hyperscale commitment adds to the construction-cost pressure the RBA is reacting against.