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Reserve Bank of Australia (RBA) Governor Michele Bullock participated in a panel discussion titled "Inflation, Financial Stability and Employment" at the Hong Kong Monetary Authority and Bank for International Settlements High-Level Conference, in Hong Kong, on Tuesday.
The central bank has to be a "little bit careful" with using rates to bring down inflation without lifting unemployment.
High employment helps people to pay their more expensive mortgages.
Australia's inflation path is similar to overseas.