Reserve Bank of Australia Governor Philip Lowe speaking, topic is "The Year Ahead", at National Press Club of Australia Conference, Canberra
(If you like it live, link here)
Headlines via Reuters:
- says "very significant" monetary support to be maintained for some time
- says cash rate will be maintained at 10 basis points as long as is necessary
- going to be some years before goals for inflation, unemployment are achieved
- do not expect to meet goals before 2024, possible it will be later than this
- would have been "unwelcome upward pressure" on A$ without QE extension
- will consider shifting yield target from April 2024 bond to Nov 2024 later this year
- would consider extending TFF, but may not be needed
- says board has no appetite to go into negative rate territory
- says closely monitoring lending standards in housing market
- would be concerned at any deterioration in standards, though few signs at moment
- says economic recovery started earlier, has been stronger than we were expecting
- says still very substantial spare capacity in the Australian economy
- says low inflation, wage growth likely to be with us for some time
- says GDP trend to be restrained by lowest population growth since WWI
- sees unemployment at 6% by end of 2021, around 5.25% by mid 2023
- aggregate household income to decline as fiscal pandemic support payments unwind
- says households have bigger financial buffers than previously
- says need to see recovery in private business investment
more to come
Full text: The Year Ahead
