According to the Reserve Bank of Australia (RBA) Governor Michele Bullock’s speech on Wednesday, Bullock said if inflation remains higher than expected, RBA will respond with policy.
Key quotes
“Bit more worried about inflation impact from supply shocks.”
“We are seeing demand slow, per capita consumption is declining.”
“Have not yet seen full impact of past rate rises on consumption.”
“If inflation remains higher than expected, will have to respond with policy.”
“We think we are running narrow path, but very alert to upside inflation risks.”
Market reaction
At the time of writing, the AUD/USD pair is trading near 0.6365,holding higher while adding 0.02% on the day.
Source: https://www.fxstreet.com/news/rbas-bullock-a-bit-more-worried-about-the-inflation-impact-from-supply-shocks-202310172309