Reserve Bank of Australia (RBA) Governor Michele Bullock said that economic data since the August meeting has been slightly better than expected. Although inflation has fallen significantly and the labor market is approaching full capacity, Bullock emphasized that the bank will continue to monitor upcoming economic data. "We've made real progress in lowering inflation, but our job is to ensure it remains within the target range for a sustained period," she said.
Bullock also noted that although labor market conditions have eased slightly, with a slight increase in the unemployment rate, tightness remains. Economists expect the RBA Board to maintain the cash rate at 3.6% at its next meeting. After a series of rate cuts this year, the RBA is expected to make further cuts in November and early next year.
Australia's labor market is still showing growth, although there are signs of a slowdown, such as a decline in hiring activity and a lower-than-usual job turnover rate. A UBS consumer survey indicates positive sentiment, with middle-income households experiencing a significant recovery. Despite this, global uncertainty remains high, particularly related to US protectionist policies and escalating geopolitical tensions.
Bullock added that despite the uncertain international environment, Australia's monetary policy is ready to respond if there is a significant impact on the country's economy. With inflation more manageable and domestic demand recovering, the RBA is expected to maintain a prudent policy stance while awaiting further economic data to determine its next steps. (ads)
Source: Newsmaker.id