The Reserve Bank of Australia (RBA) Governor Michele Bullock said on Wednesday that she expects Q1 GDP growth to be quite low. Bullock further stated that the central bank will take action if CPI does not return to target band.
Key quotes
Expects Q1 growth to be quite low
Household spending is very weak
Board judges economy still on track
Underlying inflation decreasing gradually
Demand still exceeds economy's capacity to supply
Plan A is to remain data-driven
Demand exceeds economy's capacity to supply
Economy readiness to ease if significantly weaker
Labour market easing on a number of measures
Board considers monetary policy is restrictive
If inflation proves sticky, won't hesitate to hike
If economy is much weaker, will be ready to ease
Market reaction
At the press time, the AUD/USD pair was down 0.04% on the day to trade at 0.6648.
