RBA Governor Bullock says pulse of inflation is too strong and that high inflation hurts all Australians

• Board thinks inflation will take longer to return to the target.
• We cannot allow inflation to get away from us.
• Will not give forward guidance and the board will remain focused on data.
• Did not discuss a 50bps rate increase.

RBA Governor Bullock's comments indicate a more cautious stance regarding inflation dynamics, suggesting that it may take longer to return to target levels. His emphasis on not allowing inflation to escalate further could imply a more aggressive future policy response, but the lack of forward guidance and mention of a 50bps hike suggests a careful, data-driven approach. This messaging is likely to influence expectations around future interest rate decisions and could lead to volatility in the Australian dollar and fixed income markets.