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- RBA's deputy governor Debelle: We will not raise cash rate until actual inflation is sustainably within target band
RBA's deputy governor Debelle: We will not raise cash rate until actual inflation is sustainably within target band
- There has not been any material upside surprise in inflation
- Economic recovery has "significantly exceeded" even most optimistic expectations
- But not the case for wages, inflation in Australia
- Need to see further significant gains in employment, lower unemployment rate
- Need a tighter labour market to lead to higher wage rises
- Does not expect such conditions to be met until 2024 at the earliest
- State of economy is key determinant of policy settings, not the calendar
- There are tools to deal with house prices, monetary policy not one of them
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