RBA Governor Bullock: Rate cuts possible even if inflation outside 2-3% target band

Chair and members of the Committee. This is my first appearance before the Committee as Governor. I have of course been here before, first as Assistant Governor, Financial System and more recently as Deputy Governor, so I am familiar with the process. These hearings are an important part of the accountability process for the Reserve Bank. Like Governors before me, I welcome the opportunity to answer your questions, as do my colleagues. Quite a bit has changed at the RBA since we last appeared before the Committee in August 2023. My seven-year term as Governor started last September and a new Deputy Governor, who has been appointed from outside the RBA, takes up duties next week. We have a new Statement on the Conduct of Monetary Policy, agreed between the Reserve Bank Board and the Treasurer, which makes explicit our mandate for price stability and full employment and requires us to explain regularly how we are meeting these objectives. We have had the first of our Board meetings under the new format – eight meetings a year, each over an afternoon and the following morning. The media statement following the decision on Tuesday was issued by the Board rather than the Governor and I held my first media conference, which will be a regular occurrence following each Board meeting. The RBA also released its Statement on Monetary Policy at the same time as the monetary policy decision, rather than a few days later as in the past. The Statement on Monetary Policy sets out our assessment of current economic conditions, our forecasts and risks around them, and the key issues featuring in the Board’s monetary policy decision. On our previous timetable, the Statement on Monetary Policy would have been released while this hearing was taking place. I hope this change has been valuable in enhancing the transparency of our decision on Tuesday and that it was also of some benefit for you all. post: RBA GOVERNOR BULLOCK: MORE DISTANCE TO COVER IN MEETING OUR TARGET post: RBA’s Bullock: Board Is Focused On Bringing Infl. Down - Board Hasn’t Ruled Out Further Hike But Neither Has It Ruled It In - Recent Developments In Infl. Are Encouraging, Still Some Way To Go To Meet Target - Need Services Infl. To Be ‘Quite A Bit Lower’ Than Current Levels