RBA's Lowe: Goal is to get inflation back to target range within a reasonable timeframe

• Some further tightening may be required to meet that objective
• We will do what is necessary to bring inflation back to target
• We are not on a pre-set course
• Paying attention to consumption, inflation, jobs, global economic developments
• Australian dollar had responded to change in rates outlook since April pause

That last point is subtle but perhaps it warrants more attention.

If the RBA had paused today and the Fed hikes tomorrow, it would result in the widest spread between Australia and US interest rates ever in favour of the latter. The prospect of that could lead to an even weaker aussie, which would not help with the inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term battle, and make that a tougher job for the RBA.

AUD/USD remains little changed amid the above remarks, still holding at 1% gains around 0.6695 currently.