Reserve Bank of Australia Governor Lowe says monetary policy alone cannot drive growth
Lowe Q&A now following his speech:
more:
- will take some time to get inflation above 2%
(srsly, I didn't get Lowe and Kuroda mixed up just then)
- we do have an easing bias
- recent move up in unemployment was not a trend
(oh dear, the RBA has said it want to see the u/e rate trending up before they cut …. careful here Dr. Lowe)
- APRA changes to mortgage rules would be complementary to a rate cut
- delay to govt tax cuts would lower household income growth
- would like to get timely tax relief to households
- election had no impact on policy decisions
(if I was writing on Pinocchio you know what would be happening right about now, yeah?)
- More likely the NAIRU is now below 5% in Australia
- can and should have a lower u/e rate
