RBA Governor Bullock discusses inflation challenges and monetary policy response

<p>Reserve Bank of Australia Governor Bullock spoke Wednesday evening Australian time:</p><ul><li><a href="https://www.forexlive.com/centralbank/rba-governor-bullock-inflation-is-broad-based-trimmed-mean-remains-too-high-20231122/" target="_blank" rel="follow" data-article-link="true">RBA Governor Bullock: Inflation is broad-based, trimmed mean remains too high</a></li></ul><p>National Australia Bank expects another RBA rate hike, at the February 2024 meeting. NAB assess Bullock's remarks yesterday:</p><ul><li><em>The Governor explained that “the remaining inflation challenge we are dealing with is increasingly homegrown and demand driven” and “a more substantial monetary policy tightening is the right response to inflation that results from aggregate demand exceeding the economy’s potential to meet that demand”. </em></li><li><em>In the Q&amp;A, Bullock said she expects a new Statement on the Conduct of Monetary Policy (SCMP) may be by the end of the year. Adding that the new SCMP will give confidence that “we are not just aiming for the cap, we are aiming to get to the midpoint” of the 2-3% target.</em></li></ul><p>—</p><p>There are substantial changes afoot at the RBA. One of these is 8 meetings a year instead of the current 11. For next year:</p><h3 data-v-2b84ef95="">2024 Reserve Bank Board meetings</h3><ul data-v-2b84ef95=""><li data-v-2b84ef95="">5–6 February</li><li data-v-2b84ef95="">18–19 March</li><li data-v-2b84ef95="">6–7 May</li><li data-v-2b84ef95="">17–18 June</li><li data-v-2b84ef95="">5–6 August</li><li data-v-2b84ef95="">23–24 September</li><li data-v-2b84ef95="">4–5 November</li><li data-v-2b84ef95="">9–10 December</li></ul><figure data-media-><img src="https://images.forexlive.com/images/rba_id_73a1aacf-8247-46a9-b0bc-f69c574a90fa_original.jpg" alt="Latest monetary policy decision by the RBA – 4 May 2021" width="720" height="480" wrapper-="wrapper-" data-src="https://images.forexlive.com/images/rba_id_73a1aacf-8247-46a9-b0bc-f69c574a90fa_original.jpg" /></figure><p><br></p>

This article was written by Eamonn Sheridan at www.forexlive.com.