Deputy Governor of the Reserve Bank of Australia: Further efforts are needed to lower inflation, as the current level remains too high.

Golden Ten Data reported on June 24 that Reserve Bank of Australia Deputy Governor Hauser said on Wednesday that the RBA still needs to make efforts to contain “excessively high” inflation. However, he also added that if the Middle East issues can be resolved, a drop in global oil prices would be good news. In his speech on the Phillips Curve, Hauser further explained how the inverse relationship between inflation and unemployment influenced the board’s decision to raise interest rates this year. Hauser stated that the decision to start raising interest rates in February was due to concerns that economic demand was exceeding supply more than expected, leading to rising inflation and movement up the steep end of the Phillips Curve. Therefore, it was necessary to tighten policy to ensure that inflation gradually cools down over time. “But the steep end of the Phillips Curve could also bring a glimmer of hope,” Hauser said, “This also means that timely policy measures like those we have already implemented should result in a relatively small unemployment cost while reducing inflationary pressure.”