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The Reserve Bank of Australia (RBA) “will have to wait and see  the economic impact of lockdown in Victoria”, Deputy Governor Guy Debelle said in a scheduled speech on Wednesday.

Additional quotes

“Do not expect wage growth to be high enough until 2024. “

“Hoping for wage growth at 3+% in 2024. “

“Short sharp lockdowns have had a limited economic impact so far.”

“Household sector sitting on a decent pile of savings, have the capacity to spend.”

Market reaction

The aussie has come under additional selling pressure on Debelle’s comments, with AUD/USD now testing lows at 0.7718, down 0.45% so far. Markets moved past the upbeat Australian Q1 GDP report.