RBA's Hunter: Inflation expectations remain anchored

Reserve Bank of Australia (RBA) Deputy Governor Sarah Hunter noted early Wednesday that while the RBA remains determined to keep inflation under control, and the Australian central bank sees no signs of inflation expectations becoming de-anchored, price growth has remained a sticking point for the RBA.

Key highlights

No immediate concern of expectations becoming de-anchored.

Inflation expectations remain anchored.

RBA constantly alert for signs of emerging risk.

Inflation expectations are only a component of CPI outcome.

Inflation has been more persistent than the RBA expected.

RBA is monitoring data for sticky inflation, and risks on both sides.

RBA is not obligated to conform to other central banks on policies.

Strengths and weaknesses in different sectors of the economy.

Mindful and watchful of overseas developments: Lessons to be learned.

Tax cuts and energy rebates as key risks being examined by RBA.

RBA is still waiting to assess spending response.

RBA focuses on aggregates, takes government spending as given.