RBA’s Hunter: Board Will Act As Needed To Ensure Inflation Returns To Target

Not Always Appropriate To Look Through Supply Shocks Recent Focus Has Been On Falling Consumer And Business Confidence Few Signs Of A Marked Slowdown In Economic Activity So Far Supply Shocks Create Unavoidable Trade-Offs For Central Banks And The Broader Economy Oil Shocks Could Shift Inflation Expectations Supply Shocks Do Not Reduce The Importance Of Maintaining Low And Stable Inflation Monetary Policy Can Limit Indirect And Second-Round Inflation Effects Higher Unemployment And A Period Of Low Inflation May Be Needed If Inflation Expectations Rise Some Economic Costs Are Unavoidable And Policymakers Must Strike A Balance