RBA governor Bullock: Rates need to stay restrictive for the time being

• There are still upside risks to inflation
• Too early to analyse any Trump scenario before the election is done
• Government and central bank are not in disagreement on the economic outlook
• We have the right policy settings at the moment
• If economy turns down by more than expected, we will be ready to act
• Labour market is softening but don’t see a massive sharp turnaround in underlying conditions
• We are looking for evidence that inflation is heading back into the target band
• It does not necessarily mean inflation needs to be back in the band before we start acting
• Discussion today was similar to the September meeting
• The conversation was more centered around “what we needed to see to change our mind” on policy

There’s not much of anything new as Bullock emphasises that monetary policy settings is right to deal with conditions at the moment. And that they are still looking for evidence to be convinced to change that gear, as they were previously in September as well.

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