RBA Governor Michele Bullock commented at a panel discussion today on Australia’s economic and labor market conditions, noting that the economy is still operating at a level that risks fueling inflation.
According to Bullock, while labor market tightness has eased slightly, “it’s still not easy to get staff,” indicating persistent hiring challenges for businesses.
Bullock attributed the resilience in the job market to strong “demand” and “population growth”. These factors, she noted, continue to support employment levels despite some easing in labor market constraints.
Comparing RBA’s policy stance with other central banks, Bullock remarked that while others have already moved to lower rates, RBA remains “not as restrictive.”
Nevertheless, she emphasized that the bank considers its policy “restrictive enough” to address inflation risks and is committed to maintaining this stance until there’s clear evidence of a sustained “downward trajectory in demand.”
