Breaking: RBA's Lowe: Interest rate outlook is more evenly balanced, Aussie drops to 0.7175
|The Reserve Bank of Australia (RBA) Governor Phillip Lowe is on the wires now, via Reuters, making a scheduled speech at the National Press Club, in Sydney.
Key Headlines:
Interest rate outlook is more evenly balanced.
Lower rates might be appropriate if unemployment rises, inflation stalls.
Probabilities on next rate move "appear to be more evenly balanced".
There are scenarios where the next move in rates is up, others where it is down.
Board does not see strong case for a near-term change in cash rate.
Will be monitoring developments in labour market closely.
If jobs and wages rising, will be appropriate to raise cash rate at some stage.
Lower rates might be appropriate if unemployment rises, inflation stalls.
In position to maintain current policy while assessing shifts in global economy, household spending.
Downside risks to domestic economy have increased.
Still expect economy to grow at reasonable pace over next couple of years.
Sees economy expanding by around 3 pct in 2019, 2.75 pct over 2020.
Expects Q4 GDP to be stronger than surprisingly soft Q3 outcome.
Sees unemployment declining to around 4.75 pct over the next two years.
Underlying inflation to rise to about 2 pct later this year, 2.25 pct by end of 2020.
Household consumption expected to grow around 2.75 pct over next couple of years.
Royal commission on banking recommendations on credit "balanced and sensible".
Had some concerns tightening of credit had gone too far.
Seeing a manageable adjustment in housing market, some correction was appropriate.
While global risks have increased, central scenario still positive for Australia.
Media reporting on volatility in financial markets seemed "overly excitable".
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