Reserve Bank of Australia Governor Bullock said inflation remains too high and
the RBA cannot rule out further rate increases. She said the bank is prepared to
act as needed to meet its policy goals, including raising the cash rate. But the
RBA is not rushing to hike and prefers to assess the impact of the Middle East
conflict and whether the three rate rises earlier this year will be sufficient
to curb price pressures. Bullock added that demand growth may need to slow
further for inflation to sustainably return to target and that global conditions
and the economic outlook are more uncertain, while the RBA’s objectives of price
stability and full employment remain unchanged.
