RBA's Bullock: At August board meeting, risks to outlook were skewed to the upside

Reserve Bank of Australia (RBA) Governor Michele Bullock said on Friday that risks to outlook were skewed to the upside at August board meeting.

Key quotes

Various indicators indicate labor market conditions stay near, but slightly tighter than, full employment. 

At August board meeting, risks to outlook were skewed to the upside. 

Developments since then indicate that while growth in the Australian economy is slowing, some upside risks to inflation seem to be materializing. 

Liaison program shows many firms are passing on higher input costs. 

Recent figures broadly align with expectation of demand growth easing in H1 2026. 

Housing market conditions have softened, larger-than-expected easing could weigh on economic activity. 

Key question is whether monetary tightening to date will be enough to return inflation to target in reasonable time. 

Monetary policy positioned to address developments with focus on price stability and full employment.