RBA’s Govenor-Designate Bullock: Climate change adds extra uncertainty to future policy

Dhwani Mehta FXStreet

Reserve Bank of Australia (RBA) Governor-Designate, Michelle Bullock, is speaking at the Sir Leslie Melville Lecture at the Australian National University, in Canberra.

Key quotes

Impact of climate change on the neutral interest rate is not clear cut.

Could put both upward and downward pressure on the neutral rate.

Extreme weather could lower supply in economy and raise inflation.

Transition to renewables could push energy costs down and lower inflation.

Climate change likely to lead to more volatile inflation outcomes.

Market reaction

At the time of writing, AUD/USD is trading close to intraday highs of 0.6454, adding 0.30% so far.

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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