RBA's Bullock: At August board meeting, risks to outlook were skewed to the upside
Reserve Bank of Australia (RBA) Governor Michele Bullock said on Friday that risks to outlook were skewed to the upside at August board meeting.
Key quotes
Various indicators indicate labor market conditions stay near, but slightly tighter than, full employment.
At August board meeting, risks to outlook were skewed to the upside.
Developments since then indicate that while growth in the Australian economy is slowing, some upside risks to inflation seem to be materializing.
Liaison program shows many firms are passing on higher input costs.
Recent figures broadly align with expectation of demand growth easing in H1 2026.
Housing market conditions have softened, larger-than-expected easing could weigh on economic activity.
Key question is whether monetary tightening to date will be enough to return inflation to target in reasonable time.
Monetary policy positioned to address developments with focus on price stability and full employment.
Lowering inflation is crucial.
Market reaction
At the time of writing, the AUD/USD pair is trading 0.37% higher on the day to trade at 0.7113.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bridgewater: Most AI infrastructure trades are already priced in, only holding a "very small position"
Bridgewater CIO Greg Jensen warns that assets related to AI infrastructure have already been significantly priced in by the market, and the excess return opportunities of two years ago are fading. The fund has reduced its positions to a "very minimal" level. According to system modeling through 2028, the upside potential for assets such as chips and data centers is now very limited and faces risks of financing and construction delays. Bridgewater's strategic focus has shifted to AI disruption and application sectors.
Swiss Franc gains ground as easing US Yields pressures Greenback
Korean media: Delivery times for key semiconductor equipment components have more than doubled
According to reports, there is a severe shortage of core components for semiconductor equipment in South Korea. Delivery cycles have generally doubled, and waiting times for some Japanese-made parts are as long as 40 months, with components unavailable even at a premium price. Japanese suppliers are cautious about expanding production capacity, resulting in serious delays that have impacted downstream businesses. Major construction projects like Samsung’s Pyeongtaek and SK Hynix’s Yongin face the risk of postponement, with AI chip expansion plans running into a “hard wall” in the supply chain.
Crypto prices
More
