Reserve Bank of Australia Governor Michele Bullock said on Friday that the central bank remains focused on the potential upside risks to inflation, adding that it does not expect to cut rates in the near term.

Key quotes

• The board is of the view that it currently has the balance right between reducing inflation in a reasonable timeframe.
• Our full employment goal is not served by letting inflation stay above target indefinitely.
• The board remains focused on the potential upside risks to inflation.
• The board is trying to bring inflation back to target in a reasonable timeframe while preserving as many of the gains in the labour market that we have seen in the past few years.
• There has been further progress on inflation, but it has been very slow.
• The economic outlook remains highly uncertain.
• Underlying inflation remains too high.
• Based on what the board knows at present, it does not expect that it will be in a position to cut rates in the near term.
• The board’s message, though, was that it is premature to be thinking about rate cuts.
• While goods price inflation has declined substantially, it has not been enough to offset continued high service price inflation.