RBA’s Bullock: We’re making progress in fight against inflation

• But inflation remains high
• Recent data suggests we’re on the right track
• We need greater confidence in seeing inflation return to target in a reasonable timeframe
• Risks to the outlook are finely balanced
• It is too soon to rule anything in or out
• We have changed language on guidance based on data
• Not confident enough to say that we can rule out certain interest rate changes
• But we are on the path to achieving goals set out on the inflation front

Her tone during the Q&A part on the forward guidance change is the most telling here. She stuttered a bit in trying not to explicitly mention that they are ruling out rate hikes, instead opting to say “certain interest rate changes”. It is clear that they are moving towards rate cuts already but she’s trying not to be too outspoken about that just yet.

AUD/USD now down to fresh lows on the day, lower by 0.4% to 0.6530 currently.

This article was written by Justin Low at www.forexlive.com.