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.