RBA Dep Gov Bullock says higher rates are the only tool the RBA has to curb inflation

Reserve Bank of Australia Deputy Governor Bullock speaking, indicating there are further rate hikes to come from the Bank. The comment on 'need to slow demand' is a clear indication. The Bank's tool right now is rate hike, that's how it'll slow demand for goods and services. In her earlier comments she indicated the Bank is comfortable with a higher unemployment rate ... i.e. is happy with a lower demand for labour also.

• need to slow demand for goods, services, and labour
• higher rates are the only tool the RBA has to curb inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term
• its important that the government does not add to demand and wages not rise too fast

Earlier:

• RBA Dep Gov Bullock says employment and economy need to grow below trend for a while

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When former RBA Dep Gov Debelle resigned from the Bank and Bullock was ushered in as the new Dep Gov I thought she had very big shoes to fill. Debelle was well respected in financial markets for his straight talk on what the Bank needed to do. Bullock is doing the same. Good work, she is filling the shoes admirably.