RBA governor says inflation ‘increasingly homegrown’, suggesting interest rates will remain high

Michele Bullock warns prices are ‘rising strongly for the majority of the goods and services we all consume’

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The Reserve Bank is braced for a “challenging” year ahead as it confronts homegrown price pressures, its new governor Michele Bullock says, indicating interest rates are likely to remain elevated for a while even if they don’t rise further.

In a speech on “monetary policy fit for the future” on Wednesday, Bullock told a Sydney gathering of economists that the RBA sought to tread a “narrow path” of bringing inflation back to its target 2%-3% range while keeping as many people as possible in work.

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