Christopher Kent, the Assistant Governor (Financial Markets) at the Reserve Bank of Australia (RBA), made some comments on the inflation outlook on Wednesday.
Key quotes
Some other forces likely to push inflation higher still.
Looking for clarity on how supply chain problems will resolve.
Liaison with business suggests wage pressures picking up.
Meanwhile, RBA Deputy Governor Michelle Bullock said, they “have very tight labor markets,” adding that they are “seeing some response in wages with unemployment at 4%.”
Bullock said she “expects some revision upward in our inflation forecasts.”
Market reaction
AUD/USD Is keeping its minor recovery mode intact, as it is adding 0.15% on the day to trade at 0.7590, as of writing.