No wonder Michele Bullock’s dramatic departure from the RBA’s interest rate script left markets swinging wildly

The Reserve Bank of Australia governor, Michele Bullock, said ‘I don’t think there are interest rate cuts on the horizon for the foreseeable future’. Photograph: Dan Himbrechts/AAP

The statements on Tuesday by the governor of the Reserve Bank, Michele Bullock, sent markets into a tizz, but even while she suggested rate cuts are now off the table, there’s no reason to think Australia’s economy needs to cool.

Usually when the Reserve Bank leaves rates on hold, little happens. But on Tuesday when the RBA monetary policy board announced the cash rates staying at 3.6%, the markets all got a bit spooked.