SYDNEY, Oct 18 (Reuters) – Australia’s central bank chief said on Wednesday the domestic economy was in a “challenging” situation with consumption slowing but inflation still rising and monetary policy on a narrow path to balance these forces.
Reserve Bank of Australia (RBA) Governor Michele Bullock said there were signs that inflation could be difficult to suppress, particularly in the services sector where it was proving stubborn.
She warned that the central bank was keenly aware of the upside risks of inflation and that if inflation remained higher than expected, the bank would have to respond with tighter monetary policy.
Reporting by Wayne Cole; Edited by Christian Schmollinger
Our standards: The Thomson Reuters Trust Principles.
Comments are closed.