Michele Bullock links unemployment target increase to lowering inflation
What happened
Michele Bullock, Governor of the Reserve Bank of Australia, stated that increasing the unemployment rate to 4.5% to 5% would likely reduce pressure on the labor market. This statement, made during a speech at the Committee for Economic Development event, is viewed as forward guidance signaling a desire to lower inflation.
From afr.com
Why it matters
The Governor's comments suggest a policy shift aimed at controlling inflation by influencing labor market conditions. This signals a potential change in the Reserve Bank of Australia's monetary policy direction.
Michele Bullock spoke at a think tank event in Sydney on September 22, 2026.
From afr.com
Who's involved
- Michele BullockGovernor of the Reserve Bank of Australia
- Reserve Bank of AustraliaCentral bank led by Michele Bullock, responsible for monetary policy
- Committee for Economic DevelopmentOrganization where Michele Bullock spoke regarding economic targets
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- AussieSpeculative
Aussie could see changes in the economic environment affecting its sales or costs.
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The entities involved
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Michele Bullock
Governor of the Reserve Bank of Australia
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Committee for Economic Development
organization in Arlington, United States
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