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Australia’s economy is performing well, with inflation within the central bank's 2–3% target range and a tight labor market, Governor Michele Bullock told a parliamentary committee Friday. “We have got a good unemployment rate so far. We have got inflation back in the band. We are in a pretty good spot,” she said. Household consumption is rising, offsetting weaker public demand and supporting growth. The Reserve Bank left interest rates at 3.6% last month, after three cuts since February, as it monitors inflation toward the target midpoint. Strong spending, real income growth, a resilient housing market, and a tight labor market support holding rates. Bullock noted services inflation remains “sticky” and highlighted global uncertainties, including U.S. protectionist policies, geopolitical tensions, and slower Chinese demand, though worst-case tariff scenarios have not materialized.