Summary of RBA Governor Lowe's speech: - He....>

RBA: Summary of RBA Governor Lowe's speech: 

- He put a question mark over the effectiveness of further monetary easing and

pointed to a difficult international environment, where most major central banks

are expected to cut rates, while downside risks remain tilted to the downside.

He also noted that the FX rate can be a powerful channel through which monetary

policy can affect the economy, but is limited when everyone else is easing.

- Silence may speak louder than words - or at least affect mkt perception of the

Governor's speech. While questioning the potential of further easing, Lowe

refrained from signalling the RBA's readiness to trim its cash rate - something

he did last week when he said that it wouldn't be "unrealistic" to exp. another

cut, which prompted some economists to front-load their easing forecasts.

- Moreover, Lowe called upon the government to use record low interest rates to

boost fiscal and infrastructure spending.

- Lowe didn't offer much new re: Australian labour mkt; he noted that the

country is doing well on gender inclusion in workforce, mentioned strong

employment growth and flexibility indicated by many part-time jobs.