RBA Governor Michele Bullock: Rate Hikes Aim to Curb Inflation, Further Tightening Not Ruled Out

According to Jin10, Reserve Bank of Australia Governor Michele Bullock said rate increases are necessary to lower inflation, requiring slower economic growth and a further rise in unemployment. She said accepting some pain now would avoid greater pain later. The tightening is aimed mainly at domestic capacity pressures, not at pushing the economy into recession. Bullock said unemployment remains relatively low, employment continues to grow, and there are no clear signs of economic damage or a wage-price spiral. She said the latest rate increase may not be enough to control inflation, although there is no clear evidence of that yet. The inflation outlook for the coming year is largely set, and the RBA needs time to assess how monetary policy is transmitted. Members who supported holding rates steady have not ruled out further increases and want more data. The RBA is not providing rate guidance, and the next move is uncertain; pausing to assess incoming data may be more appropriate, but that does not mean rates will not rise again.