Reserve Bank of Australia (RBA) Governor Michele Bullock said on Thursday that monetary policy will need to remain restrictive until the RBA is confident inflation is falling sustainably within the 2% to 3% target range. She warned that there is still "some way to go" and that inflation is likely to return to the target range in 2026.
Bullock said Australia’s labor market conditions "appear unusually tight" compared to similar economies and that the level of demand "still exceeds supply in the broader economy," arguing that those factors mean inflation will settle at target a little later than in some other Western economies.
