Michele Bullock was questioned on a range of pressing topics in a parliamentary hearing on Friday, including the central bank’s opinion on a dubious cryptocurrency based on an internet meme, and its recent rate cut decision.

No guarantees of further rate cuts

“The board remains cautious about the prospects for further policy easing.”

“The economic outlook remains uncertain and this is especially so the further we look into the future.”

Risk of disinflation ‘derailing’

The RBA’s board recognised Australian households have been particularly burdened, especially those with mortgages, and said high inflation had permanently increased prices.

“If the board is comfortable that inflation is heading back to target sustainably — not just popping in and then popping back out again — then that’ll give them more evidence that they can perhaps nudge the interest rate down further.”

Impact of predicted US tariffs remains uncertain

The RBA expects a further escalation with China but if Beijing can no longer export to the US, they might choose to engage in cheaper trade elsewhere and Australia could benefit.

Crypto won’t go mainstream

“If people want to transact with these things, that’s fine, I don’t see it as a core part of the payment system.”