More from RBA Gov Lowe - waters down market expectations of 4% cash rate by year end

Reserve Bank of Australia Governor Lowe

• Says a 4% cash rate by year end - "I don't think it's particularly likely"
• says it would have a first order impact on the economy

(i.e. he means by 'first order' that it would sharply slow down the economy)

Lowe dismissing market pricing of a 4% cash rate by end of year. Lowe goes on to say that the market has done a better job on rate pricing than the Bank has. Which is true, the Bank's projections have been awful. The 4% year-end rate is also a bit silly though, markets are not always correct either.

More:

• is still wanting to see annual wage growth of 3.5%
• ongoing wage growth in a 4 to 5 % range would make it harder to get inflation down

inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term