RBA's Lowe says higher global interest rates will flow through to Australia over time

RBA governor Lowe out with scheduled speech in Perth 21 Sept

• rising rates abroad have no automatic implications for Australia
• flexible AUD gives RBA considerable independence over domestic policy timing
• high household debt means consumption will be quite sensitive to higher rates
• RBA has not sought to overly fine tune mon pol
• Oz economy improving but clearly there are risks
• mon pol has important role in supporting economy through transition
• need stronger productivity to lift real per capita incomes
• period of global monetary expansion now drawing to a close
• Oz currently on course to lower unemployment, lift inflation to middle of target range
• mining investment boom coming to an end

AUDUSD 0.7986eeee 0.7976 from 0.8005 as hawkish headlines move to softer tones.

Full speech to the Chamber of Commerce, entitled "The Next Chapter", here

AUDUSD 15m

RBA's Lowe- global mon pol expansion coming to an end