The Reserve Bank of Australia (RBA) Governor Michele Bullock delivered a speech at the Anika Foundation in Sydney, addressing key points about the current economic situation. Here are some key quotes from her speech:
It is premature to be thinking about rate cuts.
As of now, board does not expect to be in a position to cut rates in the near term.
Our highest priority has been and remains to bring inflation down.
Board remains vigilant to upside risks to inflation.
Our full employment goal is not served by letting inflation stay above target indefinitely.
Substantial uncertainty around central outlook, with risks on both sides.
If circumstances change, the board will respond accordingly.
Labor market remains relatively tight, expected to ease gradually.
Labor cost growth strong reflecting wage increases, weak productivity.
Key drivers of elevated inflation are housing costs, market services.
CPI rents inflation is likely to be high for some time.
Market Reaction
After Governor Bullock’s speech, the market is likely to react to the cautious tone regarding rate cuts and inflation. Investors will be keeping a close eye on any changes in the labor market and inflation indicators. It is important to stay informed about these developments to make informed decisions about your investments.