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
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.