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 timeframeOur 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 yearsThere has been
further progress on inflation, but it has been very slowThe economic outlook
remains highly uncertain.Underlying inflation
remains too highBased 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.
