- Being pre-emptive suggests that we will take action based on something that we expect might happen
- And we are already doing that to some extent by reacting to our forecasts
- We are looking for confirmation along the way
- So, being pre-emptive and data dependent are not separate things; they are linked
- But when things are really uncertain, might lean towards wanting to see firm information before moving
- Policy is forward looking and assumes that we can continue to lower interest rates
She’s just clarifying their position after having paused in July in favour of waiting on the Q2 CPI report. All in all, nothing has really changed as they are still taking things meeting by meeting and staying on a more gradual path in cutting rates. The next key risk event will be the Australian labour market report later this week. And with that, Bullock’s presser has now ended.
This article was written by Justin Low at investinglive.com.