Michelle Bullock, Governor of the Bank of Australia, spoke at the Annika sidini foundation on Thursday as follows:
- It's too early to think about lowering interest rates.
- So far the board does not expect to be in a position to reduce interest rates in the near term.
- First we need to see results in inflation before lowering interest rates.
- We need to see the slowdown in inflation in the actual figures before any action.
- Our top priority was and still is to reduce inflation.
- We will remain prepared about the rising risks of inflation.
- Our goal of full employment cannot be achieved by allowing inflation to remain above the target indefinitely.
- The main factors behind the rise in inflation are the costs of Housing and market services.
- CPI rental inflation is likely to remain high for some time.
- The level of demand for goods and services is higher than supply.
- It is clear that the tight fiscal policy is working.
- The board of directors will not focus on one inflation figure.
- A slightly higher Australian dollar is positive for the fight against inflation.
- We will look closely at the Consumer Price Index for the third quarter, but there are other indicators that we are waiting for.
- There is great uncertainty about the central forecast, with risks on both sides.
- If circumstances change, the board of directors will respond accordingly.
- The labor market is still relatively tight and is expected to gradually ease.
- The growth of labor costs is strong, reflecting wage increases and weak productivity.
