Reserve Bank Governor Michele Bullock told Senate estimates she remained concerned about 'fairly persistent' inflation, but remained coy on whether the bank would raise interest rates again next month.
Reserve Bank Governor Michele Bullock told Senate estimates she had a"low tolerance" for inflation remaining above target, but remained coy on whether Wednesday's higher than expected figures would result in another interest rate hike.Reserve Bank Governor Michele Bullock told Senate estimates she remained concerned about"fairly persistent" inflation, but remained coy on whether the bank would raise interest rates again next month.
Reserve Bank Governor Michele Bullock told Senate estimates she remained concerned about"fairly persistent" inflation, but remained coy on whether the bank would raise interest rates again next month. Picture: NCA NewsWire/Martin Ollman Unlike its global peers, the RBA has so far left interest rates below five per cent and had been comfortable to allow inflation to moderate slowly back to target by 2025.
"The thing that we've being saying for some time, and this particular CPI print reinforced that, is that services inflation generally is remaining fairly persistent," the Governor explained.Senator Hume focused on services inflation, asking Ms Bullock to explain what factors were driving the upward pressure on prices and attempting to tease out the effect of recent wage increases on the economy.
"You'll recall that award wages increased in the September quarter, so those sorts of things are all building into services inflation," she said. The RBA Governor also pushed back against repeated questions about business profiteering and price gouging from Senator McKim, saying she had not seen any evidence to suggest corporate profits were causing inflation in the economy.She also identified the Chinese property sector as an area the RBA would continue to monitor closely given its importance to China's economy and the potential for flow on effects to Australia.
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