Reserve Bank of Australia Governor Bullock said rate increases are necessary to
reduce inflation and that growth must slow and unemployment likely needs to rise
further to ease price pressures. She said tightening is targeted at domestic
capacity constraints and is not intended to force a recession, and that
accepting some near-term pain may avoid larger pain later. Bullock noted
unemployment is still relatively low and employment remains rising, with no
clear wage‑price spiral or obvious economic cracks. She cautioned the recent
hikes may still be insufficient to bring inflation under control but there is
not yet clear evidence; the RBA needs time to observe monetary transmission and
said next year’s inflation path is largely set. Committee members preferring to
hold rates have not ruled out further hikes, the bank will not provide rate
guidance, and a pause‑and‑assess approach may be appropriate without ruling out
additional tightening.
