Harper Backs Review; Won't Follow Fed on Rate Increases (WSJ)

A WSJ interview with RBA board member Harper saw him note that “the market is reading a whole lot more of the American situation to being relevant to our situation, than what the bank is doing," with reference to rate hikes and differences observed in inflation.

• Harper noted that “given all the recent communication, there is no mystery as to why the bank is signalling it will remain patient.” He stressed that full employment is within reach, questioning "why would you want to stop?"
• He also suggested that NAIRU may very will be falling, flagging the moderate wage growth that has been observed, even as the labour market tightens.
• He also re-emphasised the focus on acting after the realisation of the central bank’s goals, as opposed to acting on forecasts
• Elsewhere, Harper noted that he would welcome a detailed review of the Bank’s operation of monetary policy.