Reserve Bank of Australia Governor Philip Lowe said on Friday that he does not expect a recession in Australia but acknowledged that there is a narrow path back to low inflation, as reported by Reuters.

Earlier in the week, Lowe noted that they will discuss raising the policy rate by either 25 or 50 basis points at the next policy meeting.

Market reaction

The AUD/USD pair showed no immediate reaction to Lowe's comment and was last seen trading at 0.6905, where it was up 0.25% on a daily basis.