RBA’s Bullock: Volatility in financial markets does affect sentiment, but not the economy

Dhwani Mehta FXStreet

Reserve Bank of Australia (RBA) Governor Michele Bullock is responding to the Q&A session following her speech titled ‘Economic Conditions in Post-Pandemic Australia with a Regional Lens’ at Thursday's Rotary Club of Armidale Annual Lecture.

Key quotes

Volatility in financial markets does affect sentiment, but not the economy.

Board considered rate hike on Tuesday.

Based on what board knows now, dont see rates coming down quickly.

We do not react to one economic number.

If economy does turn down quicker than thought, would cut rates.

Market reaction

AUD/USD holds the rebound near 0.6550 following the hawkish comments from the RBA Governor. The pair is currently trading 0.53% higher on the day to 0.6552.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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