What the Reserve Bank Governor Had to Say About the State of the Australian Economy

RBA warns first-home scheme and high energy costs could fuel new pressures, even as inflation finally falls within target range.

RBA governor Michele Bullock is seen during a meeting with Australian Prime Minister Anthony Albanese and Australian Treasurer Jim Chalmers at Parliament House in Canberra, Australia, on July 14, 2023. AAP Image/Lukas Coch

Australia has pulled inflation back inside its official target band, but Reserve Bank of Australia (RBA) Governor Michele Bullock warned the milestone is precarious, with risks building both at home and abroad.

Underlying inflation has eased to 2.7 percent, its first time within the 2–3 percent target range in nearly three years.