RBA's Ellis says hard to know how long global supply chain bottlenecks will persist
Reserve Bank of Australia Luci Ellis, Assistant Governor (Economic)
- speaking at the Ai Group Business Lunch
- says board remains committed to "maintaining highly supporting monetary conditions"
- aim of policy settings is to support a return to full employment and inflation consistent with target
- absorbing spare capacity and achieving full employment is an important national priority
- Australia's recovery exceeded all expectations even before vaccine rollout
- much of unexpected strength of recovery stems from Australia's relatively good health outcomes
- border closure has posed challenges in some parts of economy but not materially impeded recovery
- hard to know how long global supply chain bottlenecks will last
- both individual, business sectors are entering the expansion phase with stronger balance sheets than before the pandemic
- uncertainty remains over occupancy of office, retail spaces in the long
- many planned projects have been put on hold, some might end up being cancelled
not seen large-scale changes in how firms work in supply networks, including in Australia
Headlines via Reuters, bolding mine. Ellis repeating the script of ongoing policy support. Supply bottlenecks could well push inflation higher, maybe Ellis hinting that is an out for the 2024 promise or maybe I'm reading too much into it.
AUD barely changed regardless