RBA’s Harper: RBA is focused on inflation

Reserve Bank of Australia (RBA) board member Ian Harper discusses his outlook for the Australian economy, including inflation levels, in a Bloomberg interview conducted earlier today.

Key Headlines:

Australia has enormous resources

 Emphasize that politics and economics always go hand in hand

Government is not driven by ratings

Property prices rising strongly both in Sydney and Melbourne

Rising property prices restricted to both these cities only

RBA is focused on inflation of goods and services prices and not of property prices

RBA concerned about financial stability

Australia can benefit from trade diversion

Need strong domestic policy

Policy uncertainty and political uncertainty are key risks to growth