RBA Assistant Governor Sarah Hunter emphasized today the importance of China’s economic stimulus measures for Australia, noting that the central bank is actively assessing their local implications.
In a Bloomberg interview, Hunter explained, “We are factoring it into our forecasts going into November,” as China remains a key player in Australia’s economy. “China’s still very important, and we put a lot of our time and attention into thinking through what’s happening there and what it means for the economy here.”
In a separate speech, Hunter also addressed the importance of keeping inflation expectations anchored within RBA’s 2-3% target range.
She noted that “the fact that expectations feed into actual inflation outcomes means de-anchored expectations typically lead to greater inflation volatility.”
RBA remains vigilant to ensure inflation expectations remain steady, as de-anchoring could cause significant economic disruption. Hunter stressed the need to constantly track and understand how inflation expectations are evolving to mitigate any risks to the broader economy.
