Concluding paragraphs from RBA Governor.........>

RBA: Concluding paragraphs from RBA Governor Lowe's Speech:

- It remains to be seen if future growth in demand will be sufficient to put

pressure on the economy's supply capacity and lift inflation in a reasonable

timeframe. It is certainly possible that this is the outcome. But if demand

growth is not sufficient, the Board is prepared to provide additional support by

easing monetary policy further. However, as I have discussed on other occasions,

other arms of public policy could also play a role in this scenario.

- Whether or not further monetary easing is needed, it is reasonable to expect

an extended period of low interest rates. On current projections, it will be

some time before inflation is comfortably back within the target range. The

Board is strongly committed to making sure we get there and continuing to

deliver an average rate of inflation of between 2 and 3 per cent. It is highly

unlikely that we will be contemplating higher interest rates until we are

confident that inflation will return to around the midpoint of the target range.