RBA’s Bullock: Watching Closely, Inflation Risks Skewed To Upside

Cannot Let Expectations Of Higher Prices Become Embedded - Cannot Do Much About Price Impulse Over Next Year - Unemployment Still Relatively Low; Jobs Growth Continuing - Slower Growth And Higher Unemployment Needed To Lower CPI - Policy Tightening To Address Local Capacity Pressures - Monetary Policy Will Work, But Takes Time - Inflation Risks Baked In For Next Year - Members Voting For Hold Gave More Weight To Downside Risks