The Reserve Bank of Australia (RBA) is delivering a speech titled “Price stability, the supply side and prosperity” at the annual Australian Economic Development Committee dinner on Tuesday.
The board expects interest rates to increase further in the coming times.
Not on the pre-determined path, may pull back by 50bps or keep rates unchanged for the time being.
Observe the global economy, household spending, wages and price action.
Understand that many people find rising interest rates difficult.
It needs to be ensured that the current period of high inflation is only temporary.
The future is likely to remain with greater inflationary variability.
Setting a narrow inflation target range would be increasingly problematic.
A solid nominal anchor to inflation is more important than ever.
It is important that the government maintains a strong basic structural financial position.