On 5 September 2024, Michele Bullock, Governor of the Reserve Bank of Australia, delivered the keynote address at the Anika Foundation fundraising luncheon in Sydney. In her speech, Governor Bullock explored the significant economic challenges posed by persistent high inflation, drawing on historical and current perspectives to outline the critical importance of achieving price stability.

Governor Bullock delved into the Reserve Bank’s monetary policy approach, highlighting the delicate balance between lowering inflation and maintaining employment gains. She discussed the drivers of inflation, such as housing costs and market services, and emphasised the disproportionate burden of high inflation on vulnerable households.

The address concluded with insights into the resilience of Australian households amidst rising interest rates and cost-of-living pressures, reinforcing the need for a steadfast commitment to returning inflation to target levels.

Key Takeaways

• Economic Challenges: High inflation remains a key issue, with housing and market services driving above-target rates.
• Monetary Policy Goals: A balanced approach is crucial to achieving price stability while preserving employment.
• Household Resilience: Lower-income households face significant pressures, underscoring the need for targeted support.

In conclusion, Michele Bullock’s insights remind us that addressing high inflation requires a careful balance between restoring price stability and protecting employment. As we move forward, it is crucial to implement strategies that not only combat rising costs but also support our most vulnerable households. By doing so, we can work towards an economy that is resilient and equitable for all. Thank you.