Reserve Bank of Australia (RBA) Governor Michele Bullock has stated that the central bank does not have a specific target for the cash rate. Bullock made the remarks in response to queries about whether the current cash rate of 3.6 per cent is sufficiently restrictive to manage inflation effectively.
Bullock noted that the RBA’s forecasts indicate a return to the inflation target, with the unemployment rate remaining stable, incorporating several potential cash rate cuts. However, she stressed that economic conditions are subject to change, requiring the RBA Board to assess data and its implications at each meeting. This approach ensures the board remains responsive to evolving circumstances and their impact on achieving the bank’s objectives.
The Governor reinforced that monetary policy decisions will continue to be made on a meeting-by-meeting basis. The RBA will carefully evaluate incoming data to determine whether current measures are adequate to meet its economic goals. This data-dependent strategy allows for flexibility in adjusting monetary policy as needed, reflecting the uncertainties inherent in economic forecasting.
This approach highlights the RBA’s commitment to navigating the complexities of the current economic environment. By focusing on real-time data and adapting policy accordingly, the RBA aims to maintain a balanced approach that supports both inflation control and sustainable economic growth.
