Bullock Sounds Alarm on Australia's Productivity Growth Woes

Reserve Bank governor Michele Bullock has sounded an alarm on Australia's stagnant living standards. Speaking on Tuesday, July 28, 2026, she warned that weak productivity growth is a 'fundamental challenge' holding back the economy.

Bullock emphasized that addressing this issue is crucial to improving living standards and making the economy more resilient to global shocks. She noted that the Reserve Bank was prepared to raise interest rates again if inflation remained above its 2-3% target.

The slowdown in productivity growth has significant implications for Australia's economic future, according to Bullock. By focusing on keeping unemployment low while returning inflation to its target range, the RBA aims to contribute positively to living standards.