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RBA's Hart: Focus on US policy settings and their impact on Australian inflation
RBA's Hart to monitor US policies' impact on Australian inflation, stressing further rate cuts ahead.
In a speech on Monday evening, Reserve Bank of Australia Assistant Governor (Economics) Sarah Hunter said she would be closely watching the direction of US policy and its potential impact on Australian inflation. Hunt stressed that the Reserve Bank of Australia will adopt a more gradual interest rate cut strategy in the future.
Hunt noted that the February statement showed the Reserve Bank of Australia board was more cautious than the market about the prospect of further easing.
She noted that the recovery in household consumption in the December quarter was not just a temporary fluctuation, but showed a degree of sustainability. In addition, she also stressed that there is not a simple mechanical relationship between the Reserve Bank of Australia's forecasts and the board's policy decisions.
She warned that there were always risks and uncertainties surrounding the central forecast, which required the RBA to remain flexible in setting policy.
Looking ahead, Mr Hunt said the RBA would continue to take a forward-looking approach to delivering its mandate, without that conflicting with a data-dependent approach to decision-making.
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