Governor Bullock of the Reserve Bank of Australia: More concerned about the impact of supply shocks on inflation

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Reserve Bank of Australia Governor Michele Bullock delivered a speech on Wednesday. Bullock said that if inflation remains higher than expected, the Reserve Bank of Australia will take appropriate action.

We are more concerned about the impact of supply shocks on inflation.

We see demand slowing and per capita consumption falling.

The full impact of past interest rate hikes on consumption is yet to be seen.

If inflation remains higher than expected, policy responses will be needed.

We believe that the path for dealing with inflation is narrow, but we are very cautious about the upside risks to inflation.

At the time of writing, the AUD/USD was trading at 0.6365, maintaining its high level and gaining 0.02% on the day.