RBA’s Bullock: Labour Market Still Close To, Slightly Tighter Than Full Employment

Bullock's framing matters less as a labour-market read than as a signal about the RBA's reaction function: with risks skewed to the upside and some of those risks beginning to show up, the bar for treating slowing growth as disinflationary looks higher. The liaison detail is the part worth dwelling on — firms still passing on input costs suggests the last mile of disinflation is being carried by demand weakness rather than by pricing behaviour normalising. Whether that cost pass-through persists as growth slows is the open question.