Reserve Bank of Australia Considers Energy Prices Main Concern for Monetary Policy
The Reserve Bank of Australia (RBA) has singled out volatile energy prices as an uncertain factor making it more challenging for the bank to navigate the current complicated economic climate.
Speaking at the ABE Annual Dinner on Nov. 9, RBA Deputy Governor Michele Bullock said the energy situation in Europe was full of uncertainty.
“While gas prices have declined lately, they are expected to rise again, particularly if there is an unusually cold winter or Russia’s war on Ukraine escalates further,” she warned.
The deputy governor also noted that high global energy prices lifted Australia’s export earnings from coal and gas, but she said they also exerted upward pressure on goods and services prices in the country and added to inflation….