How the RBA’s ‘gift of the gab’ became its most important tool against inflation

RBA Governor Michele Bullock uses language as another tool against inflation. Picture: John Appleyard ANALYSIS RBA Governor Michele Bullock has got the gift of the gab. It may not be an official part of her job description, but it’s one of the most crucial elements of her role. And one that she’s certainly doing better at than her predecessor Philip Lowe. The language Ms Bullock uses when she fronts the media to explain each cash rate decision acts like a second tool in the central bank’s near-empty toolbox of inflationary control. Every word is analysed by the waiting media throng, digested and then debated by every economist, academic and opinion writer to come up with some kind of idea of what it all means for the months ahead. Time and time again, we are told that inflation “remains too high”, or is “sticky” or “is above the target band”. MORE:49 banks cut rates after RBA hold The RBA announced it would hold at 4.35 per cent in August. Picture: Nikki Short And we are warned that it would not take much to spark another inflationary event that would require future hikes. After the August decision to hold the cash rate, Ms Bullock began by saying that the three rate rises so far i...