05/02 Indices, page-76

Governor says rates can go lower but aren't going lower till we say so.

Bullock says rates can fall before inflation hits 2.5pc Michele Bullock says it’s not essential that inflation slows to 2.5 per cent before the RBA moves to lower the cash rate.“Do we have to be absolutely in the inflation band before we start thinking about if we think monetary policy is restrictive now, which we think it is?” she says.“And do we have to be in the band at 2.5 per cent before we think about doing that?“No, I don’t believe we do. But we do need to be very confident that we’re going to get there as we start to remove the restrictive nature of policy.”“It’s no good just to go in and then pop out again.”