Australia’s labor market is still tight while inflation is proving sticky, Reserve Bank Governor Michele Bullock said, signaling a higher bar to further monetary policy easing following three interest-rate cuts this year.
In response to her comments, traders trimmed bets on the next rate reduction and the Aussie dollar jumped. Bullock reiterated on Monday evening that the board retained a “cautious” policy stance, adding that officials require more data on jobs and prices to make a call on rates.