RBA's Bullock: Prolonged war and higher oil prices will hurt economic activity

I would like to begin by acknowledging the Traditional Custodians of the land on which we meet and pay my respects to Elders past and present. I extend that respect to all Aboriginal and Torres Strait Islander people joining us today. Thank you for having me today. This is an important opportunity to reflect on the forces shaping the Australian economy, how these forces are shifting, and how the Monetary Policy Board is responding. Since the middle of last year, inflationary pressures have picked up, partly because capacity pressures have been stronger than we previously assessed. With underlying inflation now expected to enter the 2–3 per cent range in mid-2027 and the labour market still somewhat tight, the Board was unanimous in its decision to raise the cash rate in February. Today I will set out why the Board judged a rate rise to be necessary in February, how it supports our monetary policy strategy, and how we make decisions even when uncertainty is elevated. I also want to explain why listening directly to Australian households and businesses is an essential input to our decision-making. RBA GOVERNOR BULLOCK SAYS INDICATORS SHOW LABOUR MARKET REMAINS TIGHT; BOARD UNCERTAIN IF FINANCIAL CONDITIONS ARE RESTRICTIVE ENOUGH TO RETURN INFLATION TO TARGET MIDPOINT RBA'S GOV. BULLOCK: THE BOARD REMAINS FOCUSED ON RETURNING INFLATION TO TARGET. ... RBA's Gov. Bullock: Underlying demand in the economy is further from supply potential than we had assessed.