Reserve Bank of Australia Governor Lowe speaking in Melbourne this afternoon
- Says any increase in interest rates still some time away
- No strong case for a near-term adjustment in monetary policy
- If economic growth is sustained, next move in rates will be up, not down
- Sys March qtr GDP data "bit stronger than we were expecting", consistent with central scenario
- Despite strong GDP growth, no net increase in labour productivity over past two yrs
- Says paying close attention to household finances, carefully watching consumption growth
- Says low wage growth leading to weak inflation in Australia, diminishing sense of shared prosperity
- Says "some pick-up" in wages growth would be a welcome development
- A return to wage increases of 3 pct or more "both possible and desirable"
- Liaison program suggests faster wage growth in areas of capacity constraints
- Rays risk of trade war, political development in Italy tail risks for global growth
- Increasing strains in emerging markets of Argentina, Brazil, Turkey another potential source of financial shock
Quick Headlines via Reuters
AUD down a few tics only
ps - full text: Productivity, Wages and Prosperity