Michele Bullock may have borrowed from her predecessor’s talking points but she’s leaving little doubt she is bringing her own approach to the leadership of the Reserve Bank.
Asked to detail how the institution would change from next year following the review into its governance, Bullock did so and added this caveat: “It’s going to be a suck it and see — we’re going to make some changes and see how it goes.”
It’s the sort of language that should have real cut through as Bullock works to more directly communicate with people about what the RBA is doing.
Bullock has made no bones about the need to keep people’s inflation expectations in check to ensure it returns to target. But the RBA’s own research has shown people most likely to be economically literate are well-educated, wealthy Caucasian men.
So in a time of high inflation and heavy scrutiny on the RBA’s moves, a straight-shooting approach from Bullock will be invaluable.
The title of her speech notwithstanding — including the complex term “complementarities” (where two or more things improve or emphasise each other’s qualities) — Bullock, who grew up in regional NSW, is off to a solid start.
She’s also clearly said there are certain circumstances in which the approach may have to change, and reinforcing that the RBA cannot know everything — particularly given the highly complex geopolitical environment.
Bullock also pushed back against recent commentary directly, leaving little doubt where her thinking is at.
It’s a marked and welcome shift from the way many economists speak, where ideas and forecasts are couched in vagaries.
With several other speaking engagements to come this year — and a press conference after every interest rate decision from February — the hope is that enough people are listening to what is shaping up to be a much clearer message.