Reserve Bank of Australia Deputy Governor Hunt said in a speech on supply shocks that recent oil-price-driven falls in consumer and business confidence have not yet produced clear signs of slowing in economic activity. She warned that ignoring supply shocks is not always appropriate and said if inflation expectations begin to rise the economy could face a period of low inflation alongside higher unemployment. Hunt said the board will continue to take necessary action to return inflation to targe

Reserve Bank of Australia Deputy Governor Hunt said in a speech on supply shocks that recent oil-price-driven falls in consumer and business confidence have not yet produced clear signs of slowing in economic activity. She warned that ignoring supply shocks is not always appropriate and said if inflation expectations begin to rise the economy could face a period of low inflation alongside higher unemployment. Hunt said the board will continue to take necessary action to return inflation to target and to ensure the labour market is sustainably at full employment.