RBA's Lowe: Global economy has strengthened

Author: Eamonn Sheridan | Category: Central Banks

Reserve Bank of Australia Governor Lowe appearance before the House of Representatives' Standing Committee on Economics

Lowe opens with a lie immediately - "It's a real pleasure to be in Melbourne ..."

OK, lets get on with it:
  • Further rise in AUD would cause a slower pick up in inflation and slower progress in reducing employment
  • RBA Board has been prepared to be patient with policy
  • unemployment rate has been broadly stable has allowed us this patience
  • Balance needed between benefits of stimulus and medium term risk of rising levels of debt
  • Inflation likely to continue to move higher gradually
  • Increased competition in the retail sector, particularly from new entrants, works against inflation
  • RBA central scenario is for GDP to grow at an average of around 3% over the next couple of years

There will be a Q&A after his Lowe's speech. We'll get some unscripted comments then.

I said in the preview earlier he is likely to stay on track with much from RBA analysis contained in the bank's  (just out last week) Statement on Monetary Policy (SoMP)