RBA Governor Bullock says rate rise was needed to get inflation down and that policy tightening is to address local capacity pressures
ORIGINAL · NewsquawkRBA Governor Bullock says rate rise was needed to get inflation down and that policy tightening is to address local capacity pressuresRead originalHide original
Says: Growth will need to remain subdued and unemployment is to rise further. Some pain now will prevent further pain down the track. Those voting for a hold saw more downside risks. Inflation is pretty much baked in for the next year. Not a good situation to be in and we're very uncomfortable with it regarding inflation. Don't know what the next rate move will be and not offering guidance. Probably good to wait now and see incoming data. Monetary policy will work and takes time to feed through. Not forecasting a recession. Don't know how high rates will need to go. Board makes policy decisions, we are not trying to massage expectations.
Bullock said tightening was needed to address inflation and local capacity pressures, while warning of subdued growth and rising unemployment and offering no guidance on the next rate move.
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Says: Growth will need to remain subdued and unemployment is to rise further. Some pain now will prevent further pain down the track. Those voting for a hold saw more downside risks. Inflation is pretty much baked in for the next year. Not a good situation to be in and we're very uncomfortable with it regarding inflation. Don't know what the next rate move will be and not offering guidance. Probably good to wait now and see incoming data. Monetary policy will work and takes time to feed through. Not forecasting a recession. Don't know how high rates will need to go. Board makes policy decisions, we are not trying to massage expectations.
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