RBA Speech to Senate - Press

Reading the AFR this morning I came across a couple of interesting quotes from Glenn Stevens, no doubt in reply to some of the questions he was asked by the Senate as they weren't in his speech.

"The more important issue will be for the joint support being given by both fiscal and monetary policy to be withdrawn in a timely fashion as the recovery proceeds - not too soon because we don't want to abort the recovery, but not too late as we don't want to overheat it"

The paper went on to say "He said there was a risk of fuelling inflation by leaving fiscal and monetary policy too loose, but that was some time away"

That implies to me, despite the upward move in rates since yesterday, that there is very little chance of a tightening in October and a slim chance of a tightening prior to Christmas. Retail sales figures tomorrow will start to paint a clearer picture.