RBA’s Bullock: Australian inflation path similar to overseas
Reserve Bank of Australia (RBA) Governor Michele Bullock participated in a panel discussion titled “Inflation, Financial Stability and Employment” at the Hong Kong Monetary Authority and Bank for International Settlements High-Level Conference, in Hong Kong, on Tuesday.
Key quotes
The central bank has to be a “little bit careful” with using rates to bring down inflation without lifting unemployment.
High employment helps people to pay their more expensive mortgages.
Australia’s inflation path is similar to overseas.
Monetary policy is restrictive.
Rate hikes are dampening demand.
But demand being propped up by immigration, this has contributed to second round effects of cost rises.
Services inflation is sticky.
Market reaction
AUD/USD is keeping its upbeat momentum intact despite the weak Australian Retail Sales data and RBA Governor Bullock’s cautious remarks. At the press time, the pair is trading at 0.6618, up 0.20% on the day.