Reserve Bank of Australia Governor Lowe speaking
Headlines via Reuters:
- Closer to point where it will be appropriate to pause interest rate increases
- Timing of pause will be determined by data and our assessment of the outlook
- Further tightening likely to be required to bring inflation back to target
- Recent rate increases have moved monetary policy into restrictive territory
- Board discussed policy lags, large rate rise already delivered and impact on households
- Need to get inflation down fairly soon to keep expectations anchored
- Wage and GDP data suggest risk of a prices-wages spiral remains low
- Remain alert to wage risks given the tight labour market
- Monthly CPI showed welcome drop in Jan, first sign of slowing goods inflation
- Inflation in services and rents still growing briskly
- Bounce-back in spending following pandemic has now largely run its course
- Cost-of-living pressures, higher rates, fall in house prices weighing on consumption
- Jan drop in jobs likely statistical noise, looking to see a rebound in Feb
- Underlying inflation globally is proving to be uncomfortably persistent
Full text is here:
Live link (audio) is here
---
Lowe's remarks fit in with his less hawkish statement yesterday:
- RBA announce a +25bp cash rate hike to 3.6%. As expected.
- AUD/USD marked a little lower, less hawkish Reserve Bank of Australia Gov. Lowe Statement
- ForexLive Asia-Pacific FX news wrap: RBA’s ‘dovish rate hike’ sends AUD/USD dipping
- Aussie lower after RBA offers subtle change to policy guidance
On that 'rebound in jobs in February' remark - we get the Australian February jobs report on Thursday next week. If the rebound is hefty enough it'll scupper plans to be less hawkish.