More from Reserve Bank of Australia Governor Lowe testifying in parliament
- Outlook for domestic economy is not more negative than positive
- Outlook is still a positive one with growth above trend and unemployment low
- Wages are picking up, need to be patient
- Now thinks NAIRU is lower than 5 pct, closer to 4.5 pct
- have been quite comfortable with minimum wage awards in recent years
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NAIRU is a term used by economists on inflation … in the context of what he is saying here he means unemployment has to drop further to push inflation higher.
(Which of course raises the question why he isn't doing more to push unemployment even lower … as a central bank that means why is he not cutting rates … central banks only have interest rates as their main policy tool … they have macropru also but let's get into that)
