RBA Bullock signals readiness to hike again if inflation outlook revised up

RBA Governor Michelle Bullock emphasized the central bank’s ongoing commitment to stabilizing inflation and promoting job growth in her speech today. While the Governor acknowledged the possibility of maintaining the current cash rate level to achieve these objectives, she did not shy away from highlighting potential challenges. “There are risks that could see inflation return to target more slowly than currently forecast,” she noted.

In response to the potential of inflationary pressures, Bullock assured that the Board remains vigilant: “The Board will not hesitate to raise the cash rate further if there is a material upward revision to the outlook for inflation.”

As the Board gears up for its subsequent gathering, Bullock emphasized the significance of upcoming data. She mentioned, “The Board will receive several pieces of information before its next meeting that will be important for this assessment.”

She elaborated on the forthcoming procedures, revealing, “This includes a full update of the staff’s forecasts. We will reconsider the outlook for the economy in light of incoming information and will have opportunities to explain our assessment in the media release and Statement on Monetary Policy that will follow the November meeting.”