RBA Gov Lowe says rate rises in Australia are not over

Reserve Bank of Australia Governor Lowe is speaking in parliament.

Earlier:

• RBA Gov Lowe says high inflation is damaging, corrosive. Will do what is necessary.

Lowe answering questions now.

• not finished on rates yet
• cannot let 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 remain high, would be too costly
• trimmed mean CPI gain of 6.9% vs. RBA's 6.5% forecast is a significant difference
• conditions for business are significantly above-average
• unemployment is low
• the pool of savings is substantial
• labour market remains extremely tight
• due to seasonality, the last two months' jobs are difficult to assess
• firms suggest they will grant large pay raises this year rather than next
• hearing that salary growth has accelerated
• good number of firms are offering 5% raises this year

Comments from other RBA officials

Ellis:

• labour market is a little less tight than a few months ago
• statistics could reveal an additional 50,000-70,000 jobs in the next month or so
• exceptionally large number of people are awaiting new jobs
• in January, more people than usual took leave

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Jones:

• relatively small number of loans are now in negative equity
• some resiliency in household balance sheets
• 10% of mortgagees have no extra cash after payments and costs

more to come