RBA’s Bullock Says Inflation Too High to Consider Rate Cuts
- Sustainable return of core CPI to target is forecast for 2026
- RBA sees level of demand still exceeding supply in economy
Pitt Street Mall in Sydney, Australia.
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Australia’s core inflation is “too high” to consider interest-rate cuts in the near term, Reserve Bank Governor Michele Bullock said, reiterating that there’s still some way to go before prices return sustainably to target.
“The word ‘sustainably’ is important because it recognizes that we need to look through temporary factors that influence the headline inflation rate,” Bullock said Thursday in a speech in Sydney. She pointed out that forecasts show a “sustainable return” of underlying inflation to target occurring in 2026, after it came in at 3.5% last quarter.