RBA Speech

RBA Governor Glenn Stevens spoke yesterday. Much of the speech was about the space capacity being soaked up quickly and the need for extra housing supply. One part of the speech worth highlighting, where he referred to the medium term is below.

It means unwinding temporary measures as appropriate. It means keeping a focus on flexibility. And perhaps most of all, it means resisting the temptation to assume prosperity is easily achieved, or easily managed.

"Unwinding temporary measures" could be interpreted as more rate hikes to come (no surprise). The last sentence I interpret as meaning that they have to make the tough decisions (raise rates) creating short-term hardship for long term prosperity.