RBA’s Bullock says underlying inflation remains too high

Reserve Bank of Australia Governor Bullock opening statement:

• Board is of the view that it currently has the balance right between
  reducing inflation in a reasonable timeframe
• Our full employment
  goal is not served by letting inflation stay above target
  indefinitely.
• The board remains
  focused on the potential upside risks to inflation.
• Board is trying to
  bring inflation back to target in a reasonable timeframe while
  preserving as many of the gains in the labour market that we have
  seen in the past few years
• There has been
  further progress on inflation, but it has been very slow
• The economic outlook
  remains highly uncertain.
• Underlying inflation
  remains too high
• Based on what the
  board knows at present, it does not expect that it will be in a
  position to cut rates in the near term.
• The board’s
  message, though, was that it is premature to be thinking about rate
  cuts.
• While goods price
  inflation has declined substantially, it has not been enough to
  offset continued high services price inflation

This article was written by Eamonn Sheridan at www.forexlive.com.