Reserve Bank of Australia (RBA) Governor Michele Bulock said on Thursday, “if inflation falls more quickly than forecast, the Board can respond.”
Additional comments
Hard to tell what the new Trump admin will do, as opposed to what they say they will do.
Have to set policy on what we know rather than shadows.
US tariffs could potentially see inflation in the US rise.
This is not going to impact inflation in Australia in the next six months.
We are aiming for inflation at 2.5%.
Will be in a position at some point to consider cutting rates.
As long as inflation continues on its gradual slowing path.
We do not need inflation to be at target to cut, but we need to be sure it's heading there.
Looking at forward-looking surveys, our liaison program for policy.
Will probably see more global supply shocks ahead.
If data suggests inflation is picking up again, that would be a big red flag for us.
Provided inflation keeps slowing, we can hold rates where they are for the time being.
Inflation data so far have been positive, in line with forecasts.
Employment growth in non-market sector is good.
Market reaction
AUD/USD is unperturbed by these comments, trading flat at around 0.6490 at press time.
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