RBA’s Govenor-Designate Bullock: Climate change adds extra uncertainty to future policy

Reserve Bank of Australia (RBA) Governor-Designate, Michelle Bullock, is speaking at the Sir Leslie Melville Lecture at the Australian National University, in Canberra.

Key quotes

Impact of climate change on the neutral interest rate is not clear cut.

Could put both upward and downward pressure on the neutral rate.

Extreme weather could lower supply in economy and raise inflation.

Transition to renewables could push energy costs down and lower inflation.

Climate change likely to lead to more volatile inflation outcomes.