RBA Deputy Governor Says Inflation Remains Too High, Defends February Rate Hikes

According to Jin10, on Wednesday, June 24, RBA Deputy Governor Hauser said the central bank still needs to work to bring down inflation, which remains at excessively high levels.

Hauser, speaking about the Phillips Curve during a presentation, explained that the board's decision to start raising rates in February was driven by concerns that economic demand would exceed supply more than expected, pushing inflation higher along the steeper section of the Phillips Curve. He added that timely policy measures aimed at reducing inflation should result in a relatively smaller cost in terms of unemployment, offering a silver lining amid current challenges.