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MNI BRIEF: RBA Can Move As Fast As Other Banks - Bullock

MNI (Perth)

Reserve Bank of Australia Deputy Governor Michele Bullock said its monthly meetings allow it to raise rates as fast as other banks, warning rates would increase "further over coming months" in a speech on Tuesday. She said the ability to meet 11 times a year - there is no meeting in January - is an "advantage in uncertain times" as it allows more frequent evaluation of evidence and "recalibration if necessary."

"It also means that if we increase interest rates at every meeting, we can potentially move much faster than overseas central banks," she said.

"Or, alternatively, we can achieve a similar rise in interest rates with smaller increments. The incremental change in the policy rate at recent meetings has been smaller than some other major central banks. However, our policy rate trajectory has been as steep, or steeper, than other central banks."

Bullock said inflation was "too high" and "is expected to rise further."

Robert covers RBA and RBNZ policy and the economy for MNI in Australia.
Robert covers RBA and RBNZ policy and the economy for MNI in Australia.

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