Reserve Bank of Australia Governor Bullock

  • The CPI was a little higher than we expected
  • But CPI was about where we thought it would come
  • Goods prices coming down, but services inflation remains persistent
  • Services inflation is higher than what we are comfortable with
  • Will have to build this into our forecasts

Higher than we expected and about where we thought it'd be are not consistent statements.


  • The longer inflation remains outside target band the more likely inflation expectations change
  • RBA has always had a low tolerance for inflation
  • RBA aims to slow the economy without tipping it into recession

AUD is lower on her remarks. It slumped overnight and is adding to the losses.

RBA's Bullock
RBA's Bullock