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<p>Reserve Bank of Australia Governor Lowe is giving testimony in parliament. </p><p>From his prepared remarks (Headlines via Reuters):</p><ul><li> Now that <a href="https://www.forexlive.com/terms/i/inflation/" target="_blank" id="ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_1" class="terms__main-term">inflation</a> is as high as it is, we need to make sure that inflation returns to target in a reasonable time</li><li>Inflation has very quickly gone from being too low, to being too high</li><li>RBA is committed to returning inflation to the 2 to 3 per cent target range over time.</li><li>RBA will do what is necessary to make sure that higher inflation does not become entrenched</li><li>Seeking to do this in a way that keeps the economy on an even keel.</li><li>Medium-term inflation expectations have remained well anchored</li><li>Growth in labour costs remains consistent with inflation returning to target.</li><li>It is understandable that some people are questioning whether or not too much support was provided by the RBA over the past two years</li><li>Board expects that further increases will be required to bring inflation back to target. We are not on a pre-set path</li><li>At some point, it will be appropriate to slow the rate of increase in interest rates</li><li>Case for doing that becomes stronger as the level of interest rates increases.</li><li>RBA board judged during peak of covid pandemic that the bigger policy mistake would have been to do too little, rather than too much</li><li>Board and the bank's staff welcome rba review and we have already had constructive discussions with the review panel</li></ul><p>Full text: </p><p class="title"><a href="https://www.rba.gov.au/speeches/2022/sp-gov-2022-09-16.html" itemprop="url">Opening Statement to the House of Representatives Standing Committee on Economics</a></p><p>There will be an extended Q&A to follow</p><p> ----</p><p>On these comments there is something for those forecasting a 50bp rate hikes at the next RBA meeting (October 4), and something for those forecast 25bp instead. </p><p>Lowe talking tough on the fight against inflation (the case for +50bp), for example:</p><ul><li>Inflation has very quickly gone from being too low, to being too high</li></ul><ul><li>RBA is committed to returning inflation to the 2 to 3 per cent target range over time.</li></ul><ul><li>RBA will do what is necessary to make sure that higher inflation does not become entrenched</li></ul><p>And for the +25bp side of the argument:</p><li>Seeking to do this in a way that keeps the economy on an even keel.</li><li>Medium-term inflation expectations have remained well anchored</li><li>At some point, it will be appropriate to slow the rate of increase in interest rates</li><li>Case for doing that becomes stronger as the level of interest rates increases.</li><p>So, what will it be? I'm a gonna wait until the Q&A, to see if there is more of pertinence before drawing conclusions. </p>

                This article was written by Eamonn Sheridan at forexlive.com.