Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser stated that the central bank still has work to do to reduce inflation, which he described as 'far too high' [1]. Hauser emphasized the importance of timely policy steps, suggesting that such actions could help reduce inflation with smaller unemployment costs [1]. He noted that the RBA had taken proactive policy action, including rate hikes, to address excessive capacity pressures in the economy [1].
Hauser also commented on global factors, mentioning that lower global oil prices would be a welcome development, though he cautioned that a full conflict resolution is not yet assured [1]. He highlighted that there have been significant economic developments since May, including the prospect of a US-Iran deal [1].
In terms of market reaction, the Australian Dollar (AUD/USD) was holding higher ground near 0.6910 but was down 0.10% on the day at the time of reporting [1]. No specific forward-looking statements or analyst opinions were provided beyond Hauser's remarks on the need for continued efforts to bring inflation down [1].
CONCLUSION
RBA Deputy Governor Hauser's comments reinforce the central bank's commitment to tackling high inflation through proactive policy measures. The market response was muted, with the AUD/USD slightly lower on the day. Investors may continue to watch for further RBA actions as inflation remains above target.