Developing story

Reserve Bank of Australia's governor, Phillip Lowe, is speaking on topics related to Inflation, Productivity and the Future of Money. The event is ''The Australian Strategic Business Forum – Melbourne''.

The event can be listened to here.

Key comments so far

• Stronger productivity growth is likely to mean a higher neutral real interest rate.
• Recent trends in productivity growth have not been particularly encouraging.
• CPI for the june will show a further step-up in the inflation rate, another step-up is expected later this year.
• We don't need to return inflation to target immediately.
• Possible to do this, but the path ahead is a narrow one and it is clouded in uncertainty.
• Emphasise that the concept of the neutral rate is no more than one reference point for the board.
• Neutral is not the basis of a mechanical rule and we are not on a pre-set path to achieve any specific level of the cash rate
• Board expects that further increases will be required over the months ahead

Meanwhile, AUD/USD is a touch higher on the day so far by 0.15% and oscillates at around 0.6900.