RBA’s Harper: Won't follow Fed on rate increases

In an interview with the Wall Street Journal (WSJ), Reserve Bank of Australia (RBA) board member Ian Harper said, "the market is reading a whole lot more of the American situation to being relevant to our situation, than what the bank is doing," with reference to rate hikes and differences observed in inflation.”

Additional quotes

"Given all the recent communication, there is no mystery as to why the bank is signaling it will remain patient."

“Full employment is within reach, questioning "why would you want to stop?"

“NAIRU may very will be falling, flagging the moderate wage growth that has been observed, even as the labor market tightens.”

“Re-emphasised the focus on acting after the realization of the central bank's goals, as opposed to acting on forecasts.”

“Welcomed a detailed review of the Bank's operation of monetary policy.”

Market reaction

Despite these comments, AUD/USD is unfazed, as it holds the higher ground just above 0.7200, benefiting from stabilizing risk tone on hopes for diplomacy on Ukraine tensions.

The spot was last seen trading at 0.7204, adding 0.31% on the day.