own destiny, but we can't ignore the global environment. the second reason is that as i listened to my colleagues from around the world, my thoughts kept returning to the idea of how fortunate we are to live in australia. we live in peace and we enjoy a level of material prosperity that few other people in the world 1 / 4 bis - central bankers'speeches experience. our economy has bounced back better than most from the covid - 19 disruptions and we are benefiting from a surge in the prices of our key exports. and for the first time in almost 50 years, it is possible to say that almost all australians who want a job can find one. our public services are of a generally high quality and our public finances are in better shape than those of many other countries. and our natural assets mean that australia is well positioned for the clean energy transition. we have a lot to be thankful for. none of this is to deny that we face some pretty serious challenges, but as i listened to the finance ministers and central bank governors in washington dc, i kept thinking i wouldn't want to trade our place for anybody else's. today, the board heard how the tasmanian economy too has bounced back well from the covid disruptions. gross state product per capita has grown a bit more quickly here than in the other states and the unemployment rate is the lowest in many years. visitor numbers are recovering and investment is in an upswing, with tasmania set to play an important role in australia's energy transition. on the other side of the ledger, though, household budgets are under strain from cost - of - living pressures, the rental market is very tight and many firms are finding it hard to find workers. even so, it is important to remember that we are in a better position than many others around the world. one challenge that is facing all australians is high inflation. over the year to september, the inflation rate was 7. 3 per cent. this is the highest rate in more than three decades and we are expecting inflation to increase further to reach around 8 per cent later this year. after that, inflation is expected to moderate. this is due to the ongoing resolution of supply - side problems, a decline in commodity prices and higher interest rates which will establish a better balance between supply and demand in the economy. i would like to take the opportunity to assure you that the board is resolute in its determination to return inflation to the 2 to 3 per cent

speech opening statement to the house of representatives standing committee on economics philip lowe governor canberra – 16 september 2022 good morning chair and members of the committee. thank you for holding this hearing. at the reserve bank, we take these hearings very seriously. they are a critical part of the accountability process and my colleagues and i are committed to answering your questions openly and transparently. the previous hearing was held in early february. a lot has changed since then. i would like to highlight three of these changes : 1. the decline in unemployment. 2. the surge in inflation. 3. the earlier and sharper - than - expected increase in interest rates. lower unemployment in february, the unemployment rate stood at 4. 2 per cent. today, it is 3½ per cent. this is the lowest unemploy ment rate in almost 50 years. labour force participation has also increased, so that a higher share of the workingage population has a job than ever before. and underemployment is lower too, as people who work part - time are finding it easier to get the hours they want. i wanted to recount these facts because the improvement in the australian labour market is a major achievement. australians are finding it easier to get a job than they have for a long time. young people and women are benefiting most from this and they have greater opportunities. our economy and our society are stronger as a result. higher inflation in contrast, the second change since february – the increase in inflation – is an unwelcome one. when the previous committee met in february, underlying inflation in australia had just reached the midpoint of the 2 to 3 per cent target range for the first time in many years. seven months on, we are in a very different position. inflation has very quickly gone from being too low, to being too high. over the year to june, the headline inflation rate was 6. 1 per cent. it is expected to increase further over the months ahead to peak at around 7¾ per cent later this year. inflation is then expected to start declining, to be back around 3 per cent late in 2024. global factors explain much of this increase in inflation. russia ’ s invasion of ukraine resulted in major disruptions to energy markets, increasing retail energy prices around the world. and covid - related interruptions to global production are still rippling through global supply chains, pushing prices up. the demand for goods in global markets has also been very strong