HSBC on the RBA's Lowe: Not especially hawkish but ... lack of overt dovishness

Mike had the this on Lowe's remarks overnight: RBA's Lowe says no strong case for near-term change in interest rates

HSBC comments:

AUD bounced ... In truth, his comments were not especially hawkish but it seems that the lack of overt dovishness has been enough to prompt the rally

• The Governor noted that wage growth has stabilised and will not fall further
• and the central bank remains confident that it can deliver inflation of over 2% although it is taking a "bit longer than we hoped".

The overall message remains that interest rates are more likely to go up than down

• but the central bank is in no rush to move

The Governor said there is "no strong case for near-term adjustment in policy".

Given some recent softer than expected data, it seems the market is responding to the lack of a more dovish tilt.