RBA Gov Lowe used his speech at CEDA luncheon...>

RBA: RBA Gov Lowe used his speech at CEDA luncheon to make comments on the

labour market and the latest RBA monetary policy decision.

- Lowe said that it is "not unrealistic" to expect a further cut in the RBA's

cash rate, while noting that it is "unrealistic" to expect that one 25bp cut

will alter the growth path.

- Lowe also pointed to other options than monetary policy, such as fiscal and

infrastructure spending or structural reforms.

- Turning to the labour market, Lowe argued that recent data suggests that "we

are not making any inroads into economy's spare capacity. Spare capacity seemed

to be one of his primary concerns, as he pointed to "significant

underemployment." Relevant sub-metrics may be of note in subsequent labour

market reports.

- AUD/USD posted a minor knee-jerk lower and promptly retraced the move. The

pair last deals at $0.6887, a touch higher on the day.