Following his speech titled "Recent Trends in Inflation", the Reserve Bank of Australia (RBA) Governor Phillip Lowe is responding to the Q&A session.
Key quotes
Will not raise rates to control house prices.
Very low probability of wages picking up fast enough to need rate hike in 2022.
Would be prepared to look through transitory spike in core inflation.
Chance of unwinding the 10 years of slowdown in wages growth is very, very low, close to zero chance.
Hopeful neutral cash rate could be at least as high as 2.5%.
Would welcome release of monthly CPI data in Australia.
Would be prepared to respond to very, very sharp rise in inflationary pressures.
Intend to review policy framework next year.
To review experience with policy measures through pandemic.
Market reaction
AUD/USD is keeping its range around 0.7360 on these comments, off the daily highs of 0.7369. The spot is still up 0.23% on the day.
