Bullock: No Wage-Price Spiral in Australia

The Reserve Bank of Australia (RBA) Governor Bullock stated that there is no wage-price spiral in Australia, contradicting some market expectations. The RBA's decision to raise interest rates again will be guided by domestic capacity pressures, which drive inflation. If inflation decreases, it may not require further rate hikes.

Bullock emphasized that the labor market remains tight and that the board will increase rates if necessary to control inflation. This tone suggests a hawkish stance, potentially supporting the Australian dollar (AUD).