Scholar: The Reserve Bank of Australia's downplaying of the appreciation of the Australian dollar is taking a risk.

Luci Ellis, Chief Economist of Westpac Bank, stated that the minutes of the policy meeting of the Reserve Bank of Australia underestimate the role of exchange rate appreciation in controlling inflation. She said that while the recent appreciation of the Australian dollar largely reflects changes in interest rate prospects, it is expected to have a slight impact on inflation slowdown. However, Ellis added that the recent selling of the US dollar is an independent factor that the Reserve Bank of Australia does not seem to have fully taken into account. She said that although this may not be evident for now, it does indicate that there are some downward risks to import price inflation.