The newly appointed Governor of the Bank of Australia, Michele Bullock, stated that if the inflation outlook significantly increases, the central bank will not hesitate to further raise interest rates, which is her strongest statement so far regarding the threat of new price pressures.
Our focus remains on bringing inflation back to the target level within a reasonable time frame while maintaining employment growth, "Bullock said in a speech on Tuesday. The Bank of Australia will make a monetary policy decision on November 7th, and the money market believes that the probability of raising the cash interest rate to 4.35% is slightly lower than 40%.
If the inflation outlook is significantly revised upwards, the committee will not hesitate to further increase the cash interest rate, "Bullock said. At the same time, she added that the central bank recognizes that demand growth and inflation rates have been slowing down, and there is a long-term lag in policy transmission.