Westpac's Evans on RBA's Incoming Governor

The transcript discusses leadership changes at the Reserve Bank of Australia, focusing on the transition from Phillip Lowe to Michelle Bullock. It covers the implications of these changes on policy direction, market reactions, and communication strategies. The discussion also evaluates past policy decisions, inflation forecasts, and the implementation of review recommendations. The analysis highlights the challenges and expectations for the new leadership in managing inflation and fiscal policy impacts.

What was one of the key insights from Michelle Bullock's speeches?

• The importance of reducing interest rates

• The need for a higher unemployment rate to achieve full employment

• The necessity of increasing government spending

• The benefits of maintaining a fixed exchange rate

What is one of the significant structural changes in the Reserve Bank's operations?

• Increasing the number of board meetings

• Reducing the number of board meetings

• Eliminating press conferences

• Decreasing the number of speeches

How is the market's perception of Michelle Bullock described?

• Indifferent and uninterested

• Overly optimistic and forgiving

• Highly critical and dismissive

• Unforgiving but impressed with her handling of challenges

What was Phillip Lowe's misstep regarding interest rates?

• Predicting rates would rise by 2022

• Suggesting rates would not rise until 2024

• Proposing a decrease in rates by 2023

• Advocating for immediate rate hikes

What percentage of inflation increase was attributed to supply side shocks?

• 2%

• 4%

• 1%

• 3%

What role does the central bank play in managing inflation?

• Regulating international trade

• Bringing inflation back in line

• Controlling government spending

• Setting fiscal policy

What was the inflation rate in Australia before COVID?

• 1.8%

• 3.5%

• 5.2%

• 7.8%