Inflation at the ‘right level’ to return to target: RBA Governor

Reserve Bank Governor Michele Bullock says interest rates are at the “right level” to return inflation to the central bank’s target band. The Reserve Bank has left the cash rate on hold at 4.35 per cent. Its inflation target is between two and three per cent. Inflation currently stands at 3.6 per cent to the end of the March quarter. “What the most recent data do reinforce is we must continue to be vigilant about the continued risk of high inflation,” Ms Bullock said at a press conference on Tuesday. “I’ve said before that we have made progress here and we’re not going to jeopardise that. “The rise in interest rates that has been required to bring down inflation has been painful for many people. “Inflation, though, as I’ve said before, is bad for everyone, and we have to see the job through. “We believe we have rates at the right level to return inflation to the target range next year, but as we said in the past, getting inflation back to target will take time, and I think the path will likely continue to be bumpy, and we should all be prepared for that.”