Reserve Bank of Australia Deputy Governor Bullock speaking, indicating there are further rate hikes to come from the Bank. The comment on ‘need to slow demand’ is a clear indication. The Bank’s tool right now is rate hike, that’s how it’ll slow demand for goods and services. In her earlier comments she indicated the Bank is comfortable with a higher unemployment rate … i.e. is happy with a lower demand for labour also.
- need to slow demand for goods, services, and labour
- higher rates are the only tool the RBA has to curb inflation
- its important that the government does not add to demand and wages not rise too fast
Earlier:
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When former RBA Dep Gov Debelle resigned from the Bank and Bullock was ushered in as the new Dep Gov I thought she had very big shoes to fill. Debelle was well respected in financial markets for his straight talk on what the Bank needed to do. Bullock is doing the same. Good work, she is filling the shoes admirably.