AU RBA Gov Bullock Speaks

Reserve Bank of Australia Governor Bullock expects inflation to increase further in the short term. RESERVE BANK OF AUSTRALIA’S BULLOCK SAYS ECONOMIC DATA SINCE MAY HAS NOT SIGNIFICANTLY DEVIATED FROM FORECASTS. ... Just in | RBA Governor Bullock notes early signs of tightening effects, with full impact expected in 1 to 2 years. Reserve Bank of Australia Governor Bullock says inflation remains too high and the board will act to achieve its mandate of price stability and full employment.

RBA's Gov. Bullock: Prolonged war and higher oil prices will hurt economic activity. Just in | RBA Governor Bullock warns that rising inflation may necessitate an increase in interest rates. RBA'S GOV. BULLOCK: THE BOARD WILL BE LOOKING AT WHETHER WE NEED TO MOVE MORE QUICKLY. ...

I would like to begin by acknowledging the Traditional Custodians of the land on which we meet and pay my respects to Elders past and present. I extend that respect to all Aboriginal and Torres Strait Islander people joining us today. Thank you for having me today. This is an important opportunity to reflect on the forces shaping the Australian economy, how these forces are shifting, and how the Monetary Policy Board is responding. Since the middle of last year, inflationary pressures have picked up, partly because capacity pressures have been stronger than we previously assessed. With underlying inflation now expected to enter the 2–3 per cent range in mid-2027 and the labour market still somewhat tight, the Board was unanimous in its decision to raise the cash rate in February. Today I will set out why the Board judged a rate rise to be necessary in February, how it supports our monetary policy strategy, and how we make decisions even when uncertainty is elevated. I also want to explain why listening directly to Australian households and businesses is an essential input to our decision-making. RBA GOVERNOR BULLOCK SAYS INDICATORS SHOW LABOUR MARKET REMAINS TIGHT; BOARD UNCERTAIN IF FINANCIAL CONDITIONS ARE RESTRICTIVE ENOUGH TO RETURN INFLATION TO TARGET MIDPOINT RBA'S GOV. BULLOCK: THE BOARD REMAINS FOCUSED ON RETURNING INFLATION TO TARGET. ... RBA's Gov. Bullock: Underlying demand in the economy is further from supply potential than we had assessed.

Just in | RBA Governor Bullock Acknowledges February Recognition of Excessive Inflation. RBA Governor Bullock: Patience Needed in Assessing Policy

RBA GOVERNOR BULLOCK SAYS RISKS ARE SKEWED TOWARD INFLATION AND POLICY IS RESPONDING ACCORDINGLY RBA GOVERNOR BULLOCK SAYS INFLATION REMAINS A BIT HIGH AND SHOWS SOME PERSISTENCE ... RBA GOVERNOR BULLOCK SAYS THE LABOUR MARKET IS STILL DOING REALLY WELL, CALLING IT GOOD NEWS

Good morning, Chair and members of the Committee. My colleagues and I are pleased to be here today to answer your questions. These hearings are an important part of the accountability process for the Reserve Bank. As you know, our mission is to promote the economic prosperity and welfare of the Australian people, now and into the future. We do this by conducting monetary policy with the aim of maintaining low and stable inflation and full employment, and we also support the stability of the financial system. But our responsibilities go beyond this – we work to support a reliable, efficient and competitive payments system, deliver efficient and effective banking services to Australian government agencies and provide secure and reliable banknotes. Since we last met with the Committee, the Monetary Policy Board judged that it was appropriate to tighten monetary policy to help to return inflation to target. I will start with some background to this decision and the outlook for the Australian economy. I’ll then make some remarks on the payments system and cash distribution. And I’ll finish off with an update on our progress towards achieving the objectives of the RBA Review. RBA Governor Bullock said the board will stay data-dependent as inflation risks remain persistent, the labour market is still tight, capacity constraints are being assessed, and global conditions could shift quickly.