Facing a parliamentary inquiry, Reserve Bank governor Michele Bullock says current interest rate settings should bring down inflation.
Reserve Bank governor Michele Bullock has pushed back at commentators that are demanding either higher or lower interest rates, telling a parliamentary inquiry that current rate settings appear likely to bring inflation down to a manageable level.
Reserve Bank of Australia governor Michele Bullock says current interest rate settings should bring inflation down.Financial markets are pricing in an interest rate cut by December this year, while there are some economic commentators arguing the bank needs to lift the official cash rate to bring inflation down faster.
“We did not increase interest rates as much as some other central banks. And we have received some criticism for that. Indeed, some commentators continue to call for further tightening in monetary policy,” she said. “All of this has meant that while goods price inflation has declined substantially, it has not been enough to offset continued high services price inflation.”
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.
Interest rates Australia: RBA governor Michele Bullock talks tough, but board can’t stomach raising ratesThe RBA has squibbed again this month. With long-run credibility on the line, it needs to focus on getting inflation inside the target band.
Read more »
RBA ‘will not hesitate’ to raise interest rates again to combat inflation, Michele Bullock warnsReserve Bank governor says there is ‘considerable uncertainty’ over Australia’s economic future and the board ‘remains vigilant’
Read more »
AFR view: Michele Bullock-led RBA holds prudent course on interest rates and inflationAustralia’s central bank is rightly refusing to take the soft option that would risk forcing it to confront less palatable choices later. The political debate needs to face up to this.
Read more »
RBA interest rates: No rate cuts before Christmas, says RBA governor BullockMichele Bullock has declared “near-term interest rate cuts are not on the agenda”, warning the economy remained too hot and ruling out decreasing the cash rate before Christmas.
Read more »
RBA interest rates: Why the Reserve Bank’s rates warning won’t mean much to investorsAndrew Hauser says it’s a risk to listen to “false prophets” on interest rates. But those in the market have little choice but to take a position as a crucial turning point looms.
Read more »
Rate cut could be over six months away, Reserve Bank governor Michele Bullock saysThe bank has decided to leave the official cash rate on hold at 4.35 per cent, as predicted by many economists, as inflation remains above the desired rate.
Read more »