Bullock is commenting in her press conference:
- We only considered holding rates and a 25 bps rate hike as our options today
- Will raise interest rates again if needed
- Inflationary pressures to last longer than expected
- Inflation is driven by domestic capacity pressures
- One upside risk to inflation risk has materialised, two are building
- Need to bring excess demand down, a recession is not in our central case
- Will not put too much emphasis on the August CPI number
- We think that financial conditions are restrictive
- If inflation does come down, then it is possible that no more rate hikes may be needed
- Sees bond market reacting in an orderly way still, watching the situation closely
More to follow..
This article was written by Justin Low at investinglive.com.