RBA's Hunter says focused on US policy settings, how they'll impact Australian inflation

Reserve Bank of Australia Assistant Governor (Economic) Sarah Hunter spoke at an event in Sydney.

Full text:

• Monetary Policy: Forward Looking and Data Dependent in the Face of Uncertainty

In summary:

• February statement reflected the RBA board being more cautious than the market about prospects for further easing

• Focused on US policy settings and how they will impact inflation in Australia
• Rebound in household consumption in December quarter not just a temporary pick-up
• Link between RBA’s forecast and board’s policy decision not mechanical
• Always risks and uncertainties around the central forecast

Hunter emphasizing the RBA will be taking a slow approach to rate cuts ahead. Which is what we’ve been thinking. Well, me anyway.

This article was written by Eamonn Sheridan at www.forexlive.com.



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