RBA Chief Cools Down Economy Expectations Amid Interest Rate Uncertainty

Australia's central bank chief Michele Bullock said that while the economy is more resilient than in the past, it still needs to cool down. The Reserve Bank of Australia (RBA) raised interest rates at its first three meetings this year to curb resurgent inflation.

Bullock highlighted that some further easing in demand growth is likely required to bring inflation back down sustainably to the RBA's 2-3 per cent target. She noted that a key question is whether the tightening in monetary policy earlier in the year is sufficient to achieve this goal.

The economy has adjusted gradually and broadly as expected, but conditions vary across sectors. The RBA board stands prepared to act as required to achieve its mandate, including by increasing the cash rate further if needed.