RBA may increase cash rate to reign in rising inflation

Reserve Bank governor Michele Bullock is warning of further rate rises saying they may be needed to control inflation.

Transcript

00:00 It's possible that this can be done with the cash rate at its current level, but there

00:05 are risks that could see inflation return to target more slowly than currently forecast.

00:12 And the Board won't hesitate to raise the cash rate further if there's a material upward

00:17 revision to the outlook for inflation.

00:21 At the same time though, the Board is mindful that growth in demand and the rate of inflation

00:26 have been moderating, and that there are long lags in the transmission of monetary policy.

00:32 Now the Board will receive several pieces of information before its next meeting that

00:37 will be very important for this assessment.

00:40 This includes a full update of the staff's forecasts.

00:43 We're going to reconsider the outlook for the economy in the light of incoming information,

00:49 and we'll have opportunities to explain our assessment in the media release and the statement

00:54 on monetary policy, which will follow the November meeting.

00:57 [BLANK_AUDIO]