Bullock Sees Signs of Economic Adjustment, Questions Rate Hikes

Reserve Bank Governor Michele Bullock spoke at an annual lunch in Sydney on Tuesday, July 28. She discussed the economy's resilience and its ability to adjust as anticipated. The central bank chief noted that while the world has become more shock-prone, the economy is better equipped to handle disruptions than it was in the past.

Bullock highlighted the key goal of preventing elevated cost pressures from entrenching inflation. She expressed uncertainty about whether this year's interest-rate hikes are sufficient to return inflation to target or if further tightening will be needed.