More from Reserve Bank of Australia Governor Lowe, testifying in parliament today:
- Australia in a much better position than the Fed because wages are still contained
- Outlook for the global economy is very weak
- Closer to normal setting on rates
- Next board meeting will consider whether to hike by 25bp or 50bp
- At some point will not need to hike by 50bp, getting closer to that point
- Data on Australian economy suggests economy doing very well
- Would not surprise if house prices fell by 10% from their peak
Lowe's further remarks are still not providing much clarity on if the rate hike at the Bank's October 4 meeting will be 25bp or 50bp, Indeed, Lowe specifically says that question is one to be considered at the meeting.
Reading between the lines I'd punt on 25 based on these remarks though. Others might disagree though.