RBA’s Bullock: Recent inflation developments are encouraging, some way to go to meet target

The Reserve Bank of Australia (RBA) Governor Michele Bullock spoke in parliament on Thursday after leaving rates on hold earlier this week.

Key quotes

“RBA Board is focused on bringing inflation down.”

“Remain acutely aware that the cost of living is rising much faster than it has over recent decades.”

“Recent developments in inflation are encouraging.”

“We have some way to go to meet our target.”

“Recent developments in inflation are encouraging.”

“We have some way to go to meet our inflation target.”

“Even if the economy evolves along the central path, inflation will still have been outside the target range for four years.”

“While there are some encouraging signs, Australia's inflation challenge is not over.”

“The longer inflation remains high and outside the target range, the greater is the risk that inflation expectations of households and businesses adjust higher.”

“At this stage, the board hasn’t ruled out a further increase in interest rates but neither has it ruled it in.”

“Given the substantial costs to the economy and the Australian people of continued high inflation, the board is committed to bringing inflation back to target in a reasonable time frame.”

“Trying to bring inflation back to target without slowing the economy more than necessary on the one hand or risking high inflation for longer.”

"Inflation doesn’t need to be in 2-3% band for us to think about rate cuts."

"If consumption slows more quickly than expected will be opportunity to cut rates."

"We considered range of policy scenarios at February meeting."

Market reaction

At the press time, the AUD/USD pair was up 0.03% on the day to trade at 0.6495.