RBA’s Bullock: Measured, gradual approach to monetary policy easing is appropriate

Reserve Bank of Australia (RBA) Governor Michele Bullock is speaking at the Anika Foundation in Sydney on Thursday, with audience questions expected.

Key quotes

Measured, gradual approach to monetary policy easing is appropriate.

Labor market has eased only gradually, unemployment rate relatively low.

Rise in unemployment in June was in line with our forecasts, not a "shock".

June data suggests labor market moved a little further towards balance.

Leading indicators not pointing to further significant near-term rise in unemployment.

Other labour market measures, such as vacancy rate, have been stable.

Labour market rebalancing through vacancies, hours worked, voluntary job switching.

RBA not targeting a specific unemployment rate or job losses.

Q2 core inflation may not have slowed as much as first expected.

Need data to support forecast of core inflation slowing toward 2.5%.

Want to make sure that inflation remains low and stable from here on in.

Still uncertainty and unpredictability in global economy.

Likelihood of a severe downside ‘trade war’ appears to have diminished.