RBA deputy governor Lowe

Earlier remarks here and here

More now:

  • Low global rates symptomatic of lack of growth
  • Will need to watch capital flows when US raises rates
  • Capital flows may create some stress in capital markets
  • We still have flexibility on interest rates
  • We still have flexibility on fiscal policy if needed
  • Probability of Australian recession is low
  • Can't rule out possibility of period of contraction

via Bloomberg