ContextSpeech at the Anika Foundation fundraising lunch in Sydney; the Reserve Bank of Australia pursues low inflation and full employment and must balance both goals.
Why it mattersThe RBA governor explains how the bank balances its two goals, inflation and jobs, after the post-pandemic price surge.
Problems raised
Inflation rose sharply after the pandemic.
Balancing inflation and jobs is hard.
Expectations must stay anchored.
Solutions proposed
Use the dual mandate to guide policy.
Bring inflation back sustainably into the target range.
Protect employment gains while reducing inflation.
