RBA Gov. Lowe: Demand has to grow more slowly to bring back in line with supply

From the Q&A.

Post on his speech is here:

RBA Gov. Lowe says more rate hikes are coming, but no preset path

The one-sentence summary of his speech is that Lowe sees further rate rises as still required, just at a slower than pace than we've had.

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Q&A now:

• Demand has to grow more slowly to bring back in line with supply
• There is significant demand element to higher inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term, not just supply
• very conscious that there are lags in monetary policy
• its very possible that wage growth does not pick up much further
• quantiitave tightening is not on our agenda
• neutral cash rate is at least 2.5%
• we are closer now to estimates of neutral

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Speaking of preset. (I've posted this before. Sue me)