- Inflation is still too high
- Will do what is considered necessary to achieve our mandate
- Having raised the cash rate three times, monetary policy is well placed to respond to developments
- We’ve already seen some signs that this tightening is starting to work
- Although, it will take around 1-2 years for the effects to fully flow through to the economy
- Flow of data and developments since May have not been materially different to our expectations
- Will carefully monitor conditions to assess how the combined effect of higher rates and energy shock play out
Her comments here are not anything that really stand out. It mainly reaffirms the current stance by the central bank, which reflects a bit of a pause for the time being. They have been one of the more aggressive movers among major central banks but clearly indicated a bit of a pause last month here.
As mentioned then, this passage in the statement was key in signaling that:
“Having raised the cash rate three times, monetary policy is well placed to respond to developments and the Board is focused on its mandate to deliver price stability and full employment.”
And that is pretty much what is repeated by Bullock above.
