Michelle Bullock: RBA governor to speak for first time since Trump ‘liberation day’ tariff shock

It’s only been nine days since Reserve Bank Governor Michele Bullock last spoke publicly, following the central bank’s latest decision to keep interest rates on hold.

But in economic time, it feels like years have passed.

Ms Bullock noted that the central bank’s board was concerned that uncertainty over Donald Trump’s tariffs could lead to slower economic growth.

Uncertainty persists, but the seismic market reaction to the unprecedented escalation in trade hostilities shows that the situation is worse than had been feared.

Ms Bullock’s first public appearance since the US tariff announcements, at the Chief Executive Women Melbourne annual dinner on Thursday night, will be closely scrutinised for any indication as to how the RBA will respond to the carnage.

The ASX200 has fallen almost 15 per cent since its February peak, putting it firmly in correction territory.

Another $50 billion was wiped from the ASX on Wednesday after Mr Trump’s country-specific tariffs, including imposts of 104 per cent on Chinese goods, came into effect.

Meanwhile, household confidence slumped, with respondents surveyed after the April 2 tariff announcement down 10 per cent on Westpac’s consumer sentiment index compared to the month before.

While they don’t believe Australia will enter a recession, economists such as KPMG’s Brendan Rynne and AMP’s Shane Oliver expect a hefty shave to GDP growth.

Traders are now pricing in almost 125 basis points worth of rate cuts by the start of 2026 and economists think a 50 basis point cut at the RBA’s next meeting in May is on the cards.

Ms Bullock met with Treasurer Jim Chalmers and Treasury Secretary Steven Kennedy, along with the heads of financial regulators ASIC, APRA and the ACCC, on Wednesday to compare notes over the likely fallout to the Australian economy.

The Council of Financial Regulators, as the gathering is known, noted an increase in global financial market volatility, “but that the Australian financial system was strong and resilient”.

Dr Chalmers sought to reassure households that the nation was well-placed to weather the storm.

“We’re working closely with the financial regulators and we’re confident about Australia’s ability to respond to heightened global uncertainty, but we’re not complacent,” he said.

Ms Bullock separately met with shadow treasurer Angus Taylor.

Mr Taylor faced off against Dr Chalmers in a debate on Wednesday night, with the pair attempting to convince voters they were best suited to guiding Australia through choppy economic waters in the next term of government.