- We are still looking to bring inflation down without sacrificing much
- The economy is actually in a really good position
- The labour market is really strong and domestic demand is recovering
- But it is just that we’re supply constrained, and it might be more so than what we thought a while back
- We’re still adopting the same approach/strategy but it is always difficult to strike a balance
- We are uncomfortable with inflation at the level it is currently
- If inflation continues to keep at this level, that is not acceptable; hence, the rate hike today
- There is uncertainty surrounding the persistence of inflation pressures
- We might have to raise the cash rate further if inflation remains more persistent
More to come..
This article was written by Justin Low at investinglive.com.
