Australia's interest rate-setting board is closely monitoring the potential impact of the Middle East conflict on inflation expectations, according to Reserve Bank of Australia (RBA) Governor Michele Bullock. Bloomberg posted on X, highlighting Bullock's remarks on the vigilance of the board in assessing economic risks. The RBA is particularly attentive to how geopolitical tensions might influence inflationary pressures, which could necessitate adjustments in monetary policy. Bullock emphasized the importance of being proactive in addressing any shifts in inflation expectations that could arise from international developments. The central bank's approach underscores its commitment to maintaining economic stability in the face of global uncertainties.