Reserve Bank of Australia (RBA) governor Michele Bullock faced criticism from economists after defending the country’s inflation rate during a Senate estimates hearing. Liberal senator Jane Hume questioned whether Australia’s underlying inflation rate of 3.7 per cent for the September quarter was higher than most advanced economies.
Bullock responded by emphasizing that Australia’s inflation target of 2.5 per cent is higher than the 2 per cent target of other nations. She argued that when comparing how far above their respective targets Australia and other countries are, the difference is not significant.
The defence drew sharp rebuttals from economists, who dismissed Bullock’s reasoning. The exchange highlights ongoing debates about Australia’s economic policies and the RBA’s approach to managing inflation.