RBA Bullock: Recent inflation developments are encouraging, some way to go to meet target

Reserve Bank of Australia Governor Bullock is speaking in parliament.Full text: Opening Statement to the House of Representatives Standing Committee on EconomicsHeadlines via Reuters: RBA Board is focused on bringing inflation down.Remain acutely aware that the cost of living is rising much faster than it has over recent decadesRecent developments in inflation are encouraging.We have some way to go to meet our target.Recent developments in inflation are encouragingWe have some way to go to meet our inflation targetEven if the economy evolves along the central path, inflation will still have been outside the target range for four yearsWhile there are some encouraging signs, Australia's inflation challenge is not over.The longer inflation remains high and outside the target range, the greater is the risk that inflation expectations of households and businesses adjust higherAt this stage, the board hasn’t ruled out a further increase in interest rates but neither has it ruled it in.Given the substantial costs to the economy and the Australian people of continued high inflation, the board is committed to bringing inflation back to target in a reasonable time frame.Trying to bring inflation back to target without slowing the economy more than necessary on the one hand or risking high inflation for longerThe usual measured comments from Bullock. There is nothing new or shocking here. So far at least. A Q&A will follow her prepared remarks, stay tuned! This article was written by Eamonn Sheridan at www.forexlive.com.