RBA governor Bullock: I want to be clear that inflation remains too high
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Not ruling out further tightening if needed Understand that current situation is difficult for households But that is why it is important for us to get on top of inflation Reports of a peace deal in the Middle East is good news Flow of data has been consistent with our expectatio
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4 itemsRBA governor Bullock: We expect inflation to increase further in the near-term
RBA governor Bullock: We must get on top of inflation now before it gets away from us
The desk interprets RBA Governor Bullock's recent comments as a clear signal that the central bank is prioritizing inflation control amidst external shocks. Per the full note [source], Bullock emphasized the need for vigilance against inflation expectations, suggesting that if second-round effects from current geopolitical tensions manifest, even higher rates may be necessary. This aligns with our view that the RBA's current cash rate, described as somewhat restrictive, leaves room for further adjustments depending on economic developments. The consensus among analysts suggests a cautious approach, with a focus on upcoming data releases to gauge the inflation trajectory.