Michele Bullock: Monetary policy in an era of shocks
Speech by Ms Michele Bullock, Governor of the Reserve Bank of Australia, at the Anika Foundation Fundraising Lunch, Sydney, 28 July 2026.
I'd like to begin by acknowledging the Traditional Custodians of the land on which we meet and pay my respects to Elders past and present. I extend that respect to all Aboriginal and Torres Strait Islander people joining us today.
It's a privilege to be with you again for the Anika Foundation fundraising lunch, my third year joining as Governor. The Foundation's commitment to advancing youth mental health is making a lasting difference in the lives of young Australians and their families.
A defining and recurring feature of the global economy in recent years has been the increasing frequency and impact of supply shocks.
First, there was the shock associated with the COVID-19 pandemic. Then the Russian invasion of Ukraine led to an energy price spike.
As some of the disruptions associated with these earlier adverse shocks began to recede, new risks have emerged. The conflict in the Middle East is disrupting energy markets, severe weather events have affected production and trade around the world, and continuing trade tensions add further ambiguity.
The outlook can change quickly, and uncertainty can re-emerge even as earlier risks begin to ease.
Today, I will discuss how recent global developments are affecting Australia and place them in historical context by looking back to the oil shocks of the 1970s.
The world has been more shock-prone in recent years, but the economy is more resilient than it was in the past. The adoption of credible inflation targets by central banks – to keep inflation low and stable – has played a key role in our improved resilience.