Greg Jericho is also listening to this press conference with his economist brain:

“So, the way we think about forecasting inflation and forecasting activity is about total demand and supply. And what we’ve been saying is that total demand, which is private and public together, has been above the level of supply in the economy. The ability of the economy to supply what is being demanded. And that’s what is driving inflation.” – Michele Bullock.

[But inflation is falling, or at worst stable, household spending growth is weak, private investment growth is weak. So no idea what she is worried about. GDP growth is bugger all. Excess supply? Come on.]