More comments flowing in from the Reserve Bank of Australia (RBA) Governor Phillip Lowe, as he expresses his take on the rate hike expectations and rising price pressures.
Key quotes
Markets have over reacted to recent inflation data.
Got to be sure inflation will be sustainably in 2-3% target, market pricing of early 2022 hikes is well away from where we are now.
Decline in wages growth has been decade long, needs to change dramatically.
Inflation at the mid-point of a target would not justify higher rates.
Not going to use interest rates to contain housing prices.
No concerns about a deterioration in home lending standards.
Borrowers need to be aware that loan rates will rise one day.
Don't have an inflation problem in Australia.
Unlikely we will have a yield curve target again.
Market reaction
AUD/USD is dropping 0.43% on the day, currently trading at 0.7491.