RBA’s Bullock: More substantial monetary policy tightening is right response to demand-driven inflation

Reserve Bank of Australia (RBA) Governor Michele Bullock is talking about the recent monetary policy decision at the ABE Annual Dinner in Sydney on Wednesday.

Key quotes

Our inflation challenge is increasingly homegrown, demand driven.

 More substantial" monetary policy tightening is right response to demand-driven inflation.

Supply-chain inflation is easing and has a bit further to run.

But Australian inflation is broad-based, trimmed mean remains too high.

Prices are rising strongly for majority of goods and services we all consume.

Service costs rising strongly as demand outstrips supply.

RBA liaison with firms indicates domestic cost pressures are proving persistent.

Liaison shows capacity utilization is very high, labor market tight.

Will take time to get demand-driven inflation back to 2-3% target.

Seeking to cool demand while keeping employment growing.