More from RBA Gov. Lowe - govmt policies important for growth

Author: Eamonn Sheridan | Category: Central Banks

Reserve Bank of Australia Governor Lowe says monetary policy alone cannot drive growth 

Lowe Q&A now following his speech:
  • 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



Reserve Bank of Australia Governor Lowe says monetary policy alone cannot drive growth 
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