Adding to his previous signals for rate hikes, Reserve Bank of Australia (RBA) Governor Philip Lowe said, “High inflation is cutting into peoples' real incomes,” during early Tuesday, per Reuters.

The policymaker also mentioned that they discussed 25 or 50bp (basis points) at the June meeting and will discuss 25 or 50 at the July meeting as well, per Reuters.

Additional comments

High inflation is cutting into people's real incomes.

Conscious that households have more debt, but also have more assets.

Household spending has been pretty resilient.

Does not see a recession on the horizon.

Don't think that the unemployment rate needs to rise to get inflation done.

Its possible the u/e rate will rise, it is a narrow path we are on.

Underlying inflation to return to band in a couple of years.

Current market pricing on rate hikes for this year is not particularly likely.

Board and staff welcome review of RBA.

Still wanting to see annual wage growth of 3.5%.

Ongoing wage growth in a 4 to 5 % range would make it harder to get inflation down.

AUD/USD refreshes intraday high

AUD/USD renews daily top around 0.6980 following the recent comments that portray the hawkish bias of the Aussie central bank.

Also read: AUD/USD bulls approach 0.7000 as RBA’s Lowe teases more rate hikes

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