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2026-09-18 10:00:09
[RBA Governor Bullock: Businesses are starting to "brewing" the view that high inflation will not fall back, and inflation expectations risks are worrying] (1) RBA Governor Bullock told a parliamentary committee on Friday that Australian businesses are starting to "brewing" the view that high inflation will not fall back below 3%. (2) Bullock said: "Businesses are starting to ask questions like 'Will inflation fall back?' which is a bit worrying for us." She said that businesses are not explicitly saying that they expect inflation to be around 3% or at a certain level, but there is a "feeling" among them, which is worrying. (3) Bullock acknowledged that the RBA has a dual mandate of full employment and an inflation target of 2%-3%, but she warned: "The longer we stay above target, the more worrying the risk of inflation expectations starting to adjust becomes." (4) She reiterated that inflation risks are skewed to the upside, partly due to concerns about inflation expectations; another is "the supply-side shocks coming our way, not only from the Middle East, but also from the weather-related events we have discussed," as well as demand-related issues.
