RBA Assistant Governor Discusses Monetary Policy Implications of Supply Shocks

Sarah Hunter, Assistant Governor (Economic) at the Reserve Bank of Australia (RBA), delivered a speech at the Australian Conference of Economists on 'Understanding Supply Shocks and Their Implications for Monetary Policy'. The speech highlighted the complex trade-offs supply shocks create for central banks and the broader economy, noting their increasing frequency. Hunter emphasized the importance of understanding these shocks, preparing for them, and responding in a way that minimizes persistent inflation risks while supporting sustainable economic activity.