I want to thank Bloomberg for organising this event. It’s great to be back at this venue. Since May 2022, the Reserve Bank has raised the cash rate target by 400 basis points with the goal of bringing inflation back into its target range of 2–3 per cent. Tighter monetary policy is working to slow the growth of demand and bring it into better balance with supply. This is contributing to the decline in inflation. Today I want to show how increases in the Bank’s cash rate target are transmitting through to demand and inflation. The most well-known element is the cash-flow channel, whereby a rise in the cash rate leads ... (full story)