RBA’s Bullock: We are prepared to respond in either direction depending on the data

  • We are not thinking of what size we might eventually cut rates by
  • Will only discuss how big those moves will be when the time comes
  • If our rates are steady while others cut, it supports the Australian dollar
  • Not discussed possibility of government overruling RBA on policy decisions
  • Even if headline inflation returns to 2% figure, it does not mean inflation is under control
  • “Sustainably” means inflation coming back down and staying within target band consistently
  • We are not encouraging or discouraging anything with the exchange rate
  • Focus should be on the trade-weighted index of the aussie, rather than AUD/USD

This article was written by Justin Low at www.forexlive.com. Source