Reserve Bank of Australia Has Policy Response Flexibility, Governor Says

The transcript discusses the dual risks of insufficient action leading to persistent inflation and excessive action causing economic slowdown. It highlights the central bank's role in managing these risks through interest rates, despite their uneven impact on the community. The bank aims to maintain low inflation and economic welfare, with future interest rate decisions depending on global economic developments and household spending. The central bank meets monthly to assess risks and adjust policies as needed.

In what ways can changes in interest rates affect the economy according to the text?

What is the central bank's commitment regarding inflation and economic welfare?