From a bitter political fight on rates to inflationary haircuts, Bullock’s term as Reserve Bank governor is unlikely to get easier.
Her term started with a warning of the inflationary dangers of a haircut. Twelve months later, Michele Bullock turned her attention to those who may have to
Her jawboning has been accompanied by a “political” jawboning about the bank. Treasurer Jim Chalmers has for months argued the bank’s interest rate settings have either “hammered” or “The big increases in interest rates preceded her ascension to the job,” he says. “But she’s done a pretty reasonable job overall.”One of the biggest issues that hurt former governor Philip Lowe was the bank’s so-called “forward guidance” – giving public signals about future movement in interest rates.“Clearly, the bank and Michele were burnt by the forecast that interest rates would stay low. I think the bank has taken the wrong lesson from the issues around forward guidance,” he says.
“The biggest changes have been at the cultural level. These aren’t going to affect interest rates here and now, and so people aren’t noticing them, but they are setting the course for the bank for the future, which in terms of monetary policy should put it in a better position,” she says.“If you’re trying something for the first time, then it’s going to take time to get it right,” she says.
Masters notes that Bullock has let her personality shine through in her press conferences and says that will be important in the coming months.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Hates for rates: RBA governor Michele Bullock’s tough-talking first yearFrom a bitter political fight on rates to inflationary haircuts, Bullock’s term as Reserve Bank governor is unlikely to get easier.
Read more »
Hates for rates: RBA governor Michele Bullock’s tough-talking first yearFrom a bitter political fight on rates to inflationary haircuts, Bullock’s term as Reserve Bank governor is unlikely to get easier.
Read more »
RBA interest rates: Inflation could become entrenched, former RBA research boss John Simon warnsThe central bank’s former top researcher, John Simon, says the decision not to raise rates further has not been adequately scrutinised by the board.
Read more »
Australians have ‘forgotten how bad’ high inflation can be, RBA Governor Michele Bullock says7NEWS brings you the latest local news from Australia and around the world. Stay up to date with all of the breaking sport, politics, entertainment, finance, weather and business headlines. Today's news, live updates & all the latest breaking stories from 7NEWS.
Read more »
‘Dead right’: Birmingham backs RBA Governor after Chalmers’ sprayShadow foreign affairs minister Simon Birmingham has defended RBA Governor Michele Bullock after Treasurer Jim Chalmers accused the RBA of “smashing the economy” with its rate hikes.
Read more »
Interest rates: CBA’s Matt Comyn backs RBA on rates staying higher for longerThe chief executive of the largest home lender says inflation remains too high. The market is at odds with the RBA, which has all but ruled out a cut this year.
Read more »