RBA Gov Lowe says its OK to run the risk of above 3% inflation

Earlier:

Preview is here:

• We had a lot communication from the Bank and Lowe in the previous week or so, he won't be departing from the 'patient' message.

Link for live coverage is here

• RBA Governor Lowe testimony begins at the bottom of the hour - live link

The full text of his opening statement is here

• RBA Governor Lowe testimony - full text

Summary headlines of Lowe's opening statement

More from Lowe, Q&A with the elected representatives on the committee:

• no evidence economy is over stimulated at moment
• going to wait until see evidence that inflation has picked up in sustainable way
• hope over time real interest rates return to positive territory
• would hope to get real interest rates above zero, and above 2.5% inflation
• going to look at experience with forward guidance in policy review
• broader labour costs rising faster than the wage price index
• plausible could raise rates later this year depending on economy
• evidence in inflation will only emerge slowly over time
• inertia in australian labour market, businesses reluctant to raise wages
• acceptable to run risk of inflation being above 3% for some time