Harper: ‘Robust’ Economy Can Withstand Further Hikes (BBG)

RBA Board member Harper told BBG that Australia’s economy is “robust” and flagged its capability when it comes to withstanding further interest-rate increases, with a particular focus on the labour market. “You can deal with economic challenges a whole lot easier when you’ve got 3.5% unemployed,” he said.

• Harper went on to note that “if inflation was truly external you’d probably just let the exchange rate do some work, but it has become broader. That means we do obviously need to respond in a way the bank has been responding."
• Harper chose not to comment on market pricing surrounding the RBA tightening cycle, while highlighting the “imperfect science” that is monetary policy.
• Harper spoke to BBG in a personal capacity.