Reserve Bank of Australia Governor Lowe is giving testimony in parliament.

From his prepared remarks (Headlines via Reuters):

Full text:

There will be an extended Q&A to follow


On these comments there is something for those forecasting a 50bp rate hikes at the next RBA meeting (October 4), and something for those forecast 25bp instead.

Lowe talking tough on the fight against inflation (the case for +50bp), for example:

  • Inflation has very quickly gone from being too low, to being too high
  • RBA is committed to returning inflation to the 2 to 3 per cent target range over time.
  • RBA will do what is necessary to make sure that higher inflation does not become entrenched

And for the +25bp side of the argument:

  • Seeking to do this in a way that keeps the economy on an even keel.
  • Medium-term inflation expectations have remained well anchored
  • At some point, it will be appropriate to slow the rate of increase in interest rates
  • Case for doing that becomes stronger as the level of interest rates increases.
  • So, what will it be? I'm a gonna wait until the Q&A, to see if there is more of pertinence before drawing conclusions.

    Philip Lowe rba