The Reserve Bank of Australia (RBA) Governor Lowe is making a scheduled speech titled "Inflation Targeting and Economic Welfare":
Prepared to ease policy further if demand disappoints.
Reasonable to expect an extended period of low interest rates.
Evidence does not support a change to our 2-3% inflation target.
Certainly possible demand will be strong enough to lift inflation in "reasonable timeframe".
Board is "strongly committed" to making sure inflation returns to range.
We are not inflation nutters", current target is flexible enough.
Not impossible for central banks to meet their inflation targets.
Flexibility of labor supply is a positive development.
Underlying foundations of the Australian economy remain strong.
The Australian dollar came under fresh selling pressure on Governor Lowe's dovish remarks, knocking-off the AUD/USD pair to fresh 2-week lows of 0.6966.