Michele Bullock, Governor of the Reserve Bank of Australia, said that the central bank is still some way off from cutting interest rates because inflation is still ongoing and will only return to the target range by the end of next year.

She said that the central bank is still vigilant about the upward risk of inflation, and it is too early to consider a rate cut now. The central bank has been committed to balancing the fall of inflation in a reasonable time without causing unnecessary damage to the labor market, and the current monetary policy can achieve this.

The Reserve Bank of Australia kept interest rates unchanged at 4.35% last week and maintained its hawkish stance. Traders believe that the central bank will begin a loose cycle in December, but economists' consensus is that it will not start until next year.