...RBA could keep rates unchanged well into 2025, the risk is that just as RBA is about to cut, Inflation 2.0 ignites
Bullock: ‘still risks on the upside’
Joshua Peach
Michele Bullock has defended the central bank’s comment that it is “not ruling anything in or out”, saying there remain risks to the upside.
“There are just some things at the edges that suggest that there might be a little bit of upside risk,” she said.
“The underlying inflation that we’re experiencing is still sitting at around about 5 per cent for services. That’s still a significant amount of inflation in the system.
“What that’s suggestive of is that demand is still above supply … and we still have a labor market which looks on the tighter side.”
