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