RBA Governor Bullock discusses inflation challenges and monetary policy response

Reserve Bank of Australia Governor Bullock spoke Wednesday evening Australian time:

National Australia Bank expects another RBA rate hike, at the February 2024 meeting. NAB assess Bullock’s remarks yesterday:

  • The Governor explained that “the remaining inflation challenge we are dealing with is increasingly homegrown and demand driven” and “a more substantial monetary policy tightening is the right response to inflation that results from aggregate demand exceeding the economy’s potential to meet that demand”.
  • In the Q&A, Bullock said she expects a new Statement on the Conduct of Monetary Policy (SCMP) may be by the end of the year. Adding that the new SCMP will give confidence that “we are not just aiming for the cap, we are aiming to get to the midpoint” of the 2-3% target.

There are substantial changes afoot at the RBA. One of these is 8 meetings a year instead of the current 11. For next year:

2024 Reserve Bank Board meetings

  • 5–6 February
  • 18–19 March
  • 6–7 May
  • 17–18 June
  • 5–6 August
  • 23–24 September
  • 4–5 November
  • 9–10 December
Latest monetary policy decision by the RBA - 4 May 2021

This article was written by Eamonn Sheridan at www.forexlive.com. Source