Reserve Bank of Australia deputy governor hauser said on Wednesday the bank still needs to do more to reduce inflation, which remains too high. He added that a resolution of Middle East tensions and a fall in global oil prices would be supportive for inflation. In a speech on the Phillips curve he said the board began raising rates in February because demand looked to be outstripping supply more than expected, pushing inflation up along the steep part of the curve, so policy tightening was neces

Reserve Bank of Australia deputy governor hauser said on Wednesday the bank still needs to do more to reduce inflation, which remains too high. He added that a resolution of Middle East tensions and a fall in global oil prices would be supportive for inflation. In a speech on the Phillips curve he said the board began raising rates in February because demand looked to be outstripping supply more than expected, pushing inflation up along the steep part of the curve, so policy tightening was necessary to ensure inflation cools gradually. He also said the steep Phillips curve implies timely policy measures can reduce inflation while imposing a relatively small rise in unemployment.