Michele Bullock suggests that the Reserve Bank of Australia can lower interest rates even before inflation reaches the 2.5 percent target, emphasising the importance of confidence in reaching the target when adjusting monetary policy to avoid abrupt changes.
At 11:30am, the S&P/ASX 200 is 0.13 per cent lower at 7,629.40.
The SPI futures are pointing to a fall of 13 points.
Best and worst performers
The best-performing sector is REITs, up 0.46 per cent. The worst-performing sector is Energy, down 1.31 per cent.
The best-performing large cap is Boral (ASX:BLD), trading 9.43 per cent higher at $5.92. It is followed by shares in Seven Group Holdings (ASX:SVW) and Cochlear (ASX:COH).
The worst-performing large cap is AGL Energy (ASX:AGL), trading 2.39 per cent lower at $8.59. It is followed by shares in Meridian Energy (ASX:MEZ) and Amcor plc (ASX:AMC).
Commodities and the dollar
Gold is trading at US$2049.00 an ounce.
Iron ore is 3.0 per cent higher at US$129.80 a tonne.
Iron ore futures are pointing to a 2.39 per cent rise.
One Australian dollar is buying 64.91 US cents.