RBA’s Bullock: We Do Not Target the Exchange Rate at All

Bullock's restatement is a reminder that the RBA's reaction function runs through inflation and the domestic economy, not the currency, so Australian dollar moves are left to absorb external shocks rather than prompt a policy response. For markets that read central-bank language for implicit currency guardrails, the message is that no such line exists. The open question is whether that framing holds if exchange-rate swings start feeding meaningfully into imported inflation or financial conditions, which the remark does not address.