Reserve Bank of Australia (RBA) is delivering a speech titled “Price Stability, the Supply Side, and Prosperity” at the Annual Committee for Economic Development of Australia Dinner this Tuesday.
Board expects to increase interest rates further over the period ahead.
Not on a pre-set path, could return to 50 bp moves or keep rates unchanged for a time.
Watching global economy, household spending, wage and price setting behavior.
Understand that many people are finding the rise in interest rates difficult.
Need to ensure a current period of higher inflation is only temporary.
Likely will have to live with more variability in inflation in the future.
Will be increasingly problematic to set a narrow range for inflation targets.
Strong nominal anchor for inflation is more important than ever.
Important for governments to maintain a strong underlying structural budget position.
AUD/USD is moving a few pips away from the intraday highs of 0.6636 on the above comments from RBA Chief Lowe. The pair is currently trading at 0.6623, up 0.29% on the day.