RBA’s Bullock: CPI was a little higher than we expected

The Reserve Bank of Australia (RBA) Governor Michele Bullock stated earlier Thursday that CPI was a little higher than expected, but about where we thought it'd be

Key quotes

“The CPI was a little higher than we expected.”

“But CPI was about where we thought it would come.”

“Goods prices coming down, but services inflation remains persistent.”

“Services inflation is higher than what we are comfortable with.”

“Will have to build this into our forecasts.”

“The longer inflation remains outside target band the more likely inflation expectations change.”

“RBA has always had a low tolerance for inflation.”

“RBA aims to slow the economy without tipping it into recession.”

Market reaction

The Australian Dollar (AUD) faces some selling pressure following the RBA Governor Bullock speech. At the press time, the AUD/USD pair is losing 0.31% on the day to trade at 0.6289.