ICYMI:

Headlines via Reuters.

Reserve Bank of Australia Governor Lowe:

  • Australians should be prepared for more interest rate increases
  • level of rates still very low for an economy with low unemployment, high inflation
  • says wants to emphasise that we are not on a pre-set path on rates
  • pace and extent of hikes will be guided by the incoming data
  • will be watching carefully how household spending responds to rising rates
  • board committed to doing what is necessary to return inflation to 2 to 3% target
  • want to ensure inflation expectations remain anchored
  • says now expect CPI inflation to peak around 7% in Q4, then decline
  • higher global interest rates will lessen current inflationary pressures
  • growth in domestic spending is stretching the economy
  • many firms reporting the availability of labour is a significant constraint
  • end of yield target was disorderly, caused some reputational damage to rba

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Later (0130 GMT) from the Reserve Bank of Australia we get the minutes of the June meeting.