RBA Governor Philip Lowe reiterated the three central messages in the meeting minutes, in a speech titled “Trust and Prosperity“. He noted:
“First, the economy is moving in the right direction and further progress is expected in lowering unemployment and having inflation consistent with the target.
Second, the probability of an increase in interest rates is higher than the probability of a decrease. If the economy continues to move along the expected path, then at some point it will be appropriate to raise interest rates. This will be in the context of an improving economy and stronger growth in household incomes.
Third, the Board does not see a strong case for a near-term change in interest rates. There is a reasonable probability that the current setting of monetary policy will be maintained for a while yet. This reflects the fact that the expected progress on our goals for unemployment and inflation is likely to be gradual. The Board’s view is that it is appropriate to maintain the current setting of policy while this progress is made.”
